Socialist MPs yesterday backed a motion that would limit high-interest rate loans to individuals, rather than supporting a cabinet proposal that would have set a maximum on total lending fees (THM).
Parliament will vote on the amendments to legislation concerning financial regulatory issues next week.
Initially, the government planned to cap the THM at ten times the base rate. This regulation, if implemented, would have undoubtedly hit doorstep lenders hard, which in some cases charge THM of several hundred percent, Népszabadság notes.
The Socialists instead proposed that individuals may take out loans with interest rates of 65% or higher only once a year, and that the value of such loans may not exceed Ft 250,000. Repayment could only be postponed once, by six months. If approved by Parliament, the changes would probably not affect doorstep lenders much.
A second proposal not approved by the cabinet was endorsed. This one, submitted by the Free Democrats is aimed at significantly reducing the transaction fees for payments by bank card.
The law on the population census of 2011 was once again approved. Regarding the question of whether people should be asked about their religion, Socialist deputy caucus leader István Göndör said there is no need for that question. It is important to know how many people are handicapped, in part because they receive state support, he said, whereas religious affiliation is not relevant in the census.
Under another amendment, from January 2010 athletes with Olympic medals who are sentenced to prison for crimes, will not receive the customary lifetime allowance. One reason for this change is that the state still transfers a Ft 199,000 monthly stipend to 1992 wrestling gold medallist Péter Farkas, who fled abroad after his conviction on drugs charges.
This is downright f&cking scandelous!
Once again Hungarian MP’s err on the side of abject stupidity.
This country is in the dark ages when it comes to credit. And before everyone jumps on me saying it is good not to encourage, I do understand the dangers of over-extending credit. However, all this means is that there is no liquidity in the economy and people are still over extended with their credit due to rip-off interest rates.
Even the banks themselves are not much better that loan-sharks with 30+% interest rates.
Who is this motion trying to protect?
@JD. Let’s face it, this law is for the seriously financially challenged and cannot see the dangers inherent in borrowing at rates 65% or higher. As opposed to the more clued up, who happily subscribe to the HU non-unusary rate of just 30%.
I like the monthly stipend for an olympian. A quick tally assuming an 8% interest rate compounded monthly, an expected lifespan of at least 50 years and that the 199k/mo is adjusted yearly with inflation suggests that each one of these athletes costs the nation 115m HUF today. Who would have thought that amateurs could do so well?
Wow, I never knew this. Even a bronze medallist gets
Ft 190,000 / month for life? Wow again. I never
heard of any western country offering something like
this. Is it a legacy of the socialist times –
certainly sounds like it. It’s great they bring
some glory to the country, after a lot of hard work,
but a stipend for *life*? Funded by the taxpayer?
Well, wouldn’t that money be better spent
encouraging *current* and up-and-coming top
sportspeople? That amount of money would go a long
way to support more than one young athlete.