In his interview to public radio Kossuth, Prime Minister Viktor Orbán, who is currently in Japan, expressed his hope that decision will be made quickly on the issue foreign currency denominated loans by Hungary's Curia as soon as possible.

He said the judiciary should clarify whether banks or borrowers should bear the losses on mortgages due to changes in the exchange rate. In addition, a clear statement should be made whether banks can change unilaterally the interest rate on a loan, to the disadvantage of the borrower. He said it was shocking that the banks had formed a cartel, as revealed by the Competition Office (GVH), after the early repayment scheme was announced.

Speaking about recent economic figures on growth, Viktor Orbán said, employment and real wages demonstrated that Hungary is progressing fast but added that it would be a mistake to become overly self-confident.

The Prime Minister confirmed his support of the flat-rate tax system as well. The tax system used before 2010 nearly destroyed Hungary, yet “the same economic policymakers are constantly recommending the same bad tax system ... Let's stick with the current one and the results will start coming in,” The Prime Minister said. Starting from January next year, several hundred thousand Hungarian families will benefit from the expansion of family tax allowances, he said, by adding that the family-friendly tax system has now been secured for the long term in the constitution. Commenting on the special taxes such as those levied on banks and utilities, he said it would be irresponsible to say when these can be discontinued. However, the special taxes are currently only imposed in the bank sector and on large international corporations that hold a monopoly or near monopoly in the market. The increased taxes are justified in their cases, he added.

In connection with his ongoing visit in Japan, he informed that tyre manufacturing in Hungary will further strengthen as a result of an agreement concluded between MOL and Japan Synthetic Rubber, which includes setting up a synthetic rubber factory expected to start operation in Tiszaújváros in 2017. He noted that the Japanese are very cautious, "but once they decide to enter somewhere, they will stick to it." This is demonstrated by total Japanese investment of EUR 3.5 billion in Hungary, which, like trade, is likely to increase in the years to come, he added. Japan has realised that it would be a mistake to consider Europe as a homogeneous unit, which is why it has plans especially targeted to central Europe and to Hungary in industrial development, trade and investment, Viktor Orbán said.

The Prime Minister finally emphasized that one third of Hungary's exports should be sold outside the European Union by 2018. Hungary was naturally interested in the success of the EU, he added, by noting that 75-80 per cent of Hungary's export is now directed at EU members.

(Prime Minister’s Office)