9 September 2011

Over recent days, the MNB has put forward to the Government a number of proposals aimed at reducing the debt-service burdens of borrowers. The Bank reaffirms its view that it only supports a solution to reduce the burdens of borrowers which will not pose a threat to the stability and safe functioning of the domestic financial system.

The aim of the Magyar Nemzeti Bank is to find a feasible solution jointly with the Government and involving the HFSA and banks to reduce the debt-service burdens of borrowers, while ensuring long-term stability. The MNB only supports solutions which will not encourage solvent debtors to stop honouring debt. In addition, the additional burden on the banking sector from such a solution should not endanger the stability and functioning of the domestic financial system, one of the most important pillars of sustainable economic development.