BUDAPEST (Reuters) – Hungary’s government has asked banks to impose a voluntary cap on interest rates on new loans for households and companies from Oct. 9 to boost lending and support economic recovery, the economy ministry said on Tuesday following talks with banks.
In a statement, the Ministry for Economic Development said banks should impose an interest rate cap on new loans for households at maximum 8.5% while the cap on new loans for businesses should be set at 12%, both below the central bank’s benhcmark rate that stands at 13%. It said talks between the ministry and banks will continue.
(Reporting by Krisztina Than)