In the Czech daily Hospodařské noviny, Erste Group director Andreas Treichl said that despite Hungary’s poor economic performance and a deteriorating situation for banks, Hungary remains a key market. As with the rest of Central Europe, says Treichl, Hungary’s crisis is over and it makes sense to invest there. But he warned that the growing popularity of special bank taxes would only serve to reduce the volume of credit that they were able to provide.
Hungary could have its own ‘bad bank’ up and running by the fall, according to the country’s Central Bank managing direcotr Marton Nagy. He said the bank’s primary goal would be to purchase loans made on commercial real estate. The price paid on each purchase would be determined by the property’s market value, rather than trying to protect the banks from poor loans.
