EBRD to work with Hungarian authorities on recently amended Judicial Enforcement Act

Impact of changes to be analysed jointly

The EBRD and the Hungarian authorities have agreed to set up a working group to analyse the impact on the banking sector of the recent amendment of the Judicial Enforcement Act by the country’s Parliament and to identify ways to mitigate any potential adverse consequences.

The Government of Hungary and the EBRD signed a Memorandum of Understanding in February 2015 aimed at strengthening the country’s financial sector, improving its level of efficiency and profitability as well as boosting lending. Facilitating access to finance is key to support economic growth.

Under the Memorandum the Government of Hungary pledged to “promote a stable and predictable framework to support macroeconomic stability.” The successful implementation of the Memorandum had positive impacts on the development of the economy and strengthened the local banking sector.

The EBRD regards the creation and safeguarding of a stable business environment which allows the financial sector to serve the economy and consumers as critical for sustainable growth. The Bank is committed to continue its fruitful cooperation with the Hungarian authorities and institutions such as the Central Bank and the Banking Association.