Reducing burdens while maintaining stability

The Magyar Nemzeti Bank’s views on reducing the burden of borrowers

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.

MAGYAR NEMZETI BANK

Communications

Vissza a tetejére

The primary objective of the MNB shall be to achieve and maintain price stability. (...) Without prejudice to its primary objective, the MNB shall support the maintenance of the stability of the system of financial intermediation, the enhancement of its resilience, its sustainable contribution to economic growth; furthermore, the MNB shall support the government’s economic policy and its policy related to environmental sustainability, using instruments at its disposal.