|
Hungary Credit Criteria
After several rounds of reform, credit decisions often
remained unrelated to the past profitability or
creditworthiness
of the potential borrower, and the government often used
the
credit system to bail out enterprises operating at a loss.
In
cooperation with other banks and financial institutions,
the
Hungarian National Bank issued "Guiding Principles on
Credit
Policy" as part of the state five-year plan. Credits were
extended under varying conditions, with different interest
rates,
maturities, and priorities to influence development in
harmony
with the national plan. The directives of the Hungarian
National
Bank were binding on all other parts of the banking
system.
Data as of September 1989
|
