[ad_1]
By leaving monetary policy conditions unchanged, the central bank has strengthened the pillars of its policy so far, he said. György Matolcsy, the governor of Magyar Nemzeti Bank (MNB) at a press conference on the central bank’s YouTube channel on Tuesday. The governor noted that the MNB used all means to support price stability, financial stability and the government’s economic policy.
Speaking about the 2020 valuation, he said that the Hungarian economy will suffer the fifth biggest decline in the last 100 years this year, but the forecasts are good and we can look at the next few years “positively”. The Monetary Council reaffirmed the programs that prevented a fourth financial crisis, in addition to the three types of crisis that marked this year – health, economic and emotional – said the governor of the MNB, who said that he considered this a great achievement. that the great economic recession of 2009 was preceded by the financial crisis.
György Matolcsy declared that, fulfilling the central bank’s promise, in 2020 he defended the results of the last 10 years by investing almost 6 billion HUF in financing the economy.
With an amount of more than 10 percent of Hungary’s GDP, the MNB provided outstanding support to the finances of business players, the state and families during the virus situation, both within the region and compared to the EU. added.
The central bank governor recalled the programs that played a role in maintaining financial stability, “gave air to the economy”, such as the 1.4 billion HUF Nhp hair! The 600 billion growth bond program HUF, the purchase of government securities for 1 billion HUF 2.3 billion guaranteed loans, which also benefited from the HUF 250 billion dividend payment to the budget.
The central bank governor also mentioned that it is worth learning from those countries that expect a recession less than the 6.0-6.5 percent drop expected in Hungary, such as the Poles and Latvians, where it is expected to be from the 3.5 and 2.2 percent, respectively. the economic recession.
According to the central bank governor, the performance of the economy could also have been improved by increasing government consumption and public investment.
György Matolcsy presented the views of the Monetary Council on what to do in the coming years, according to which 80 percent of the main structural reforms needed must be advanced, from the transformation of the health system through demographics and the pension system to housing policy.
The MNB also urges the development of economic and financial plans for 3, 5 and 10 years, the establishment of development ideas and the elaboration of a competitiveness plan.
Regaining growth is important, but at the same time balance should not be forgotten, the MNB’s first man noted, noting that he does not consider achieving a balance by 2022 a realistic goal.
Mihály Patai, member of the Monetary Council and vice president of the MNB, pointed out in the online press conference that 32 companies have used the central bank’s growth bond program so far this year;
The bond program mobilized HUF 570-600 billion, which is irreplaceable in the current situation, as it provides relatively cheap capital to larger companies with development ideas, explained the vice president. The smallest issue of corporate bonds was 1, the largest was HUF 70 billion, added Mihály Patai, referring to the fact that the program will continue next year.
Speaking of the growth loan program, the vice president explained that during its phase launched in April, 17,000 companies received cheap financing and in 8 years, 60,000 small and medium-sized companies took advantage of the opportunity.
(MTI)
[ad_2]
