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Dec 01, 2016

Hungarian government plans tax rebate to boost lending

The rebate would carry an upper limit and would be available to banks that increase their corporate loan stock by at least 20 percent

The Hungarian government is planning rebates in a financial transaction tax for commercial banks that boost lending to companies substantially, Mihály Varga, minister for National Economy has said.

According to Reuters, minister Varga said that the rebate, which would carry an upper limit, would be available to banks that increase their corporate loan stock by at least 20 percent.

The minister added that the government would discuss the proposal with the Hungarian Banking Association and hoped for a "good compromise" as higher lending would contribute to stronger economic growth next year.