The European Central Bank attacked plans by Hungary to ease household debt, warning the move could put the Hungarian banking sector at risk, in a statement issued by the ECB that was made available yesterday.
In a legal opinion signed by its president Mario Draghi, the ECB heavily criticized the Hungarian authorities for failing to consult with it properly on legislation adopted by parliament in July.
The new legislation is aimed at helping Hungarians, still struggling to repay foreign-currency loans which many took before the 2008 financial crisis.
“The Hungarian authorities have … failed to comply with their duty to consult the ECB,” Draghi wrote.
“The draft law was adopted on July 4, 2014, shortly after the ECB was consulted, and before it could adopt its opinion. As a consequence, it was not possible for the Hungarian parliament to take the ECB’s views into account before legislating,” he complained.
