UPDATE 3-Hungary scraps state support for home savings bank deposits [Reuters (UK)]
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Source: Reuters
UPDATE 3-Hungary scraps state support for home savings bank deposits | Reuters 4 Min Read * Fast-track motion takes market participants off guard * Eliminates state subsidies for such savings in future * Aims to channel state funds to other housing programmes * Lawmaker says companies earned “extra profits” on scheme (Updates with law passed) By Gergely Szakacs and Marton Dunai BUDAPEST, Oct 16 (Reuters) - Hungary’s government will end state subsidies for home savings bank deposits, saying the scheme is too costly, inefficient and had failed to encourage the construction of new houses. The measure, approved in parliament on Tuesday, could affect banks that sell subsidised savings products, including Budapest-based lender OTP Bank and Fundamenta, majority-owned by Germany’s Bausparkasse Schwäbisch Hall. After taking power in 2010, Prime Minister Viktor Orban imposed hefty taxes on banks to shore up state finances and introduced measures to help borrowers at the expense of lenders. But
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