Hungary’s National Association of Savings Cooperatives (OTSZ) will initiate all means of appeal against a new law on the integration of the savings cooperatives, both at home and in European forums, association head Sándor Demján said.
Speaking on Friday, after parliament approved an amended version of the law, Demján said no “genuine” talks had taken place with the government on the legislation, and savings associations had no knowledge of the content of the plan put before the government and submitted to parliament.
Prime Minister Viktor Orbán on Friday replied in a letter to the initiative by the association. Orbán said that the law had been preceded by long consultations. The conclusion was that the cooperatives „need significant reform and increased involvement from the state.”The problems of two cooperatives in particular revealed that the system as a whole is “unable to effectively protect the assets of members or depositors.”
The amendments will also require savings cooperatives to hold accounts exclusively with Takarékbank from November 1, 2013, rather than July 1, 2016. Takarékbank, in which the state recently acquired a 38 % stake, has traditionally been the bank for Hungary’s savings cooperatives.