World Economy

Hungary Banks to Grow

Hungary Banks  to GrowHungary Banks  to Grow

Growing demand and lower taxes mean Hungary’s banks are set to grow this year, a top Hungarian banker said on Tuesday, contrasting with the troubles of the wider European financial sector, NewsNow reported. Mihaly Patai, chairman of the Hungarian Banking Association, told the pro-government daily Magyar Idok in an interview that banks also expected the central bank and government to give the market a boost. “This is a new economic cycle,” he said. “The (growth) engine that used to be limited to EU funds and global companies now includes agriculture and domestic consumption.” That optimism contrasts with the grim start to the year for banks in most of Europe, where share prices have tumbled by around a quarter. Hungarian bank shares are flat so far this year. Hungary’s government had imposed one of highest levies on the banking sector in Europe to stabilize its budget, but has begun to unwind those taxes this year.