“As a result of changes in legislation on loans, the Government is directing some one thousand billion forints from banks to the people”, Prime Minister Viktor Orbán said on Friday on Kossuth Radio’s 180 Minutes programme, where he also confirmed that the Government is in negotiations with regard to acquiring one or more foreign-owned banks. The Prime Minister also stated that the Cabinet had not yet developed a firm standpoint with regard to shops staying closed on Sundays.
According to the Prime Minister, the Government has achieved its objectives, including a tangible reduction in instalment payments and maintaining the principle that forint debtors must not find themselves at a disadvantage compared to the foreign currency debtors whom the Government is now assisting. The Prime Minister called all this a great success, adding that the Cabinet would not allow “a similar situation” to develop again.
He also noted, however, that the fund management company and previous “debtor rescue practices” must continue to operate in future.
In reply to a question concerning why conversion to forints will be compulsory, the Prime Minister said that we cannot allow people in Hungary to fall into debt in foreign currencies, unless someone has the required foreign currency available, in the form of income, for instance.
In the radio interview, Mr. Orbán also confirmed that the Government is in negotiations with regard to acquiring one or more foreign-owned banks.
The Prime Minister also noted that the state had recently re-acquired the MKB Bank, and said that the Government might overachieve its earlier undertaking to ensure that 50 percent of financial institutions operating within the Hungarian financial system should be in Hungarian hands; we may well achieve 60 percent, he said.
On the subject of shops staying closed on Sundays, as proposed by the Christian Democratic People’s Party (KDNP), the Prime Minister said that “we are in the middle of a great debate” and must take many criteria into account; a firm standpoint is yet to be established. What is certain, however, is that the Government in no way plans to influence people’s behaviour, the Prime Minister said.
In reply to a question on whether the Government had used the new special tobacco industry tax to replace revenues lost as a result of the delayed internet tax, Mr. Orbán said: yes, partly.
The Prime Minister also spoke about the US entry ban affair, stating that the issue is beginning to lose all seriousness. He referred to a document that an employee of the American Embassy had given to the Hungarian party with relation to the entry bans; the piece of paper basically just lists previous discussions on the Embassy’s concerns regarding possible corruption.
The document is not signed, it has no header and is not stamped; it is a "summary of the same allegations that we have already heard from opposition parties over the past four years”, the Prime Minister said, noting that if any one of Hungary’s ambassadors were to present a piece of paper of this kind to another government, he/she would have to be ordered home the next morning.
However, Mr. Orbán also stated that we “must stick to the principle of zero tolerance when it comes to corruption”.
The Prime Minister stressed that the functioning of the National Tax and Customs Administration (NAV) must be stabilised with its current directorship. “Anyone who causes a disturbance in the operation of the NAV, either by resigning or by unduly attacking it, is risking the unbalancing of the country’s finances”, he said.
The Prime Minister also stated that while we are talking about VAT fraud, and “it is clear that VAT fraud does occur in Hungary”, revenues from the consumer tax continue to rise each year, meaning that from the perspective of the country’s financial stability, “the tax office is doing better”, while accusations against the authority are gaining strength. He also said that he would not like to set a precedent whereby a foreign power accuses a public servant, but doesn’t provide evidence, and nevertheless succeeds in having them removed from their position.