(Bloomberg) -- Hungary is in talks with lenders to convince them to agree to a “voluntary” cap on mortgage rates to boost economic growth, Cabinet Minister Gergely Gulyas said.
Economy Minister Marton Nagy has already held talks with banks about a plan to maximize mortgage rates at 5%, Gulyas told a briefing on Wednesday in Budapest. That’d be below the central bank’s 6.5% key interest rate, which is currently tied with Romania for the highest benchmark in the European Union.
Prime Minister Viktor Orban’s government is seeking to stimulate the economy in the run-up to the 2026 general elections. The steps include allowing Hungarians to tap their private pension funds without a tax penalty for housing-related expenditures as well as measures aimed at bolstering small- and medium-sized companies.
©2024 Bloomberg L.P.