The Banking Environment
Economy
Hungary voted to join the EU as from May 2004. Economic growth has slowed from over 4% p.a. in the late 1990s to around 3%. Inflation is still 4% and the public deficit was 9.6% of GDP in 2002, very high compared to Maastricht guidelines. Hungary is likely to have to restrain public expenditure for some years if it wishes to join the EUR.
It has 10 million inhabitants and a GDP per head of EUR7,000.
Central Bank
The National Bank of Hungary (Magyar Nemzeti Bank).
Banking System
There are 31 commercial banks, many savings banks and 12 or so specialised financial companies.
70% of banking is under foreign ownership and only 10% remains state-owned; the government intends to sell off the remainder if it can.
Both residents and non-residents can have HUF and foreign currency accounts, and they can attract interest or go into overdraft.
Currency
Hungarian Forint (HUF)