30 April 2013

On 30 April, the President of the National Bank of Hungary (MNB) disclosed that a
decision on converting two-week National Bank bonds into deposits could be
reached “within weeks”. As a result of negotiations with banks, it has been agreed that
commercial banks will be able to grant discount loans to small and medium-sized
enterprises at a maximum interest margin of 2.5 per cent plus guarantee costs. Within
the framework of the “lending for growth” programme, small and medium-sized enterprises
can apply for funds with a value between HUF 3 million and HUF 3 billion. The
National Bank is pursuing a conservative and responsible monetary policy, Mr. Matolcsy
pointed out.


Favourable employment data

28 March 2013

In light of the flash report by the Hungarian Central Statistical Office (KSH) released earlier this morning, the positive trend regarding employment – a priority area for the Government – continues unabated. In the period December 2012 - February 2013, according to the latest data, the two-and-a-half-year upward trend is being maintained and the increase in the number of people in employment continued in comparison to the corresponding period of the previous year. Within the observed period, the total number of people in employment was 3 million 817 thousand, which corresponds to an increase of 0.6 percent compared to the same period in 2011-2012. Another favourable sign is that employment indicators improved with regard to both sexes.

A further favourable trend is that the employment rate for the 15-24 year and 55-64 year age group increased by 1.5 percent and 1.2 percent, respectively, in comparison to the level of one year ago. This improvement is attributable to the positive impact of the Government’s Job Protection Action Plan, which provides significant employer tax incentives for employees under the age of 25 years and above the age of 55 years.