After the 2008-2009 crisis, it took six and a half years to reach the previous level of GDP, but now a year and a half was enough for this, Giorgi Matulci wrote in his opinion article. Central Bank Governor Hungarian nationIn his article published in 2006, he recalled that the successful management of the Hungarian crisis was based on credit, which was also critically supported by the targeted programs of the Magyar Nemzeti Bank (MNB).
György Matolcsy in his writings also explained that within two years Hungary was 2% closer to the average development of the 27th European Union. He added that the overreach in the crisis has been almost correlated.
Portugal is only one percent ahead of us, and so are the Poles. This feature can be worked on by one percent this year
He said.
The central bank governor noted that raising funds for crisis management could have been obtained through the forced sale of state assets, but that this would have been a “fatal mistake”. According to Giorgi Matulci, the other way would have been to obtain a “huge amount of foreign currency loans” instead of the 11,000 billion HUF provided by MNB.
However, euro/dollar borrowing was not possible during the pandemic and the global economic crisis, but if it were possible, it would have had to raise nearly 30 billion euros in new loans, raising the public debt rate by more than 20 percent and added.
Just as the successful 2010-2019 decade provided a good foundation for effective crisis management in 2020-2021, we will be able to build on our current successes as we move towards sustainable catch-up. To do this, we must first break the strong pace of inflation and restore the balance of our finances
Giorgi Matulsi said.
