Public utility cut scheme to continue in April, says Fidesz

Budapest, January 24 (MTI) – The ruling Fidesz-Christian Democrats plan to decide at Friday’s group meeting about further cutting gas prices in April as part of the government’s public utility scheme, group leader Antal Rogan told daily Magyar Nemzet.

In an interview published on Friday, Rogan said electricity and district heating prices are also planned to be cut by varying extent later in the year. Companies owned by public municipalities can expect to receive compensation in connection with the district heating price cut but the energy office will assess the conditions for efficient operation, he added.

Rogan, who is also the head of parliament’s economic committee, said that if the current ruling parties get the support of the public at the spring election, then a boost for loans granted at reference rates will be an important element of the next government term. This will result in a drop in lending rates and will be especially important in the retail sector, he added.

In order for real competition to develop in the banking sector, new players will need to enter the market, Rogan said. It is most likely that there will be acquisitions to strengthen the position of Hungarian banks, he added.

“I’d be glad to see for instance Takarekbank to become a strong player in the market for banks,” he said.

As regards the state’s role in strengthening the sector, he said what’s needed is tighter regulations. The new law on savings cooperatives and the strengthening of Takarekbank have been part of these efforts and a law on bank consolidation will also be necessary, he added.