The Hungarian stock market and currency fell under the Victor Orban windfall tax

After the Prime Minister of Hungary, Victor Orban, After announcing plans to create a tax on extraordinary corporate profits (the English expression “windfall docs”), shares of the country’s major companies and the local currency Hungarian fluorine – recorded a sharp decline.

Hungarian refiner Mol Nyrt fell nearly 15% this Thursday, to 2.93% to 33.48 guilders. In turn, Nyrt Bank, the country’s largest bank, lost more than 13%.

In the foreign exchange market, the Hungarian currency depreciated 0.8% against the euro, the biggest drop in two months after losing 3.1% against the single currency. Currently, each euro is worth 391.85 guilders. On Thursday, the country’s central bank met and decided to keep key interest rates unchanged at 6.45%.

These movements in the markets arise after Wednesday, when Victor Orban addressed the nation via video message, announcing that “extra profits” would be taxed in the banking, insurance, energy and telecommunications sectors over the next two years. , Retail and air transport

The money raised will help reduce the cost of public services and reform the country’s armed forces. With this new recipe, it is possible to avoid the freezing of European funds ordered by Budapest Brussels.

Fidesz, Orbán’s party, won the April 3 election with 54% of the vote, giving him a two – thirds majority in parliament for the fourth time in a row, and legitimizing his leadership for four years.

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