Tightening of Private Equity Funds, Parliament Steps In
4 Articles
4 Articles
The previous government left “not small, but big gates” in the regulation of state financing, Finance Minister András Kármán said in a debate in the parliament on Tuesday. By closing them, the government justifies the amendment to the law on private capital funds, state development banks and the integration of savings cooperatives, which was supported by 115 votes in the National Assembly.
Parliament passed the amendment to the law on the protection of state assets and financing with extraordinary speed. The new rules tighten lending by state banks and allow investors in certain private equity funds to initiate the replacement of the fund manager and to review previous investments. According to Transparency International, since 2013, state investment commitments worth 2,645 billion forints have been made in various equity funds.
The Tisza government passed the amendment to the law in a single day through the Parliament, which aims to protect the trillions of euros previously allocated by state banks and private equity funds and prevent asset rescues. The new regulation tightens lending conditions with immediate effect and orders a full review of state-backed financing.
The speed was reminiscent of the Fidesz days. MBH Bank and 4iG Plc. may also be targeted.
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