The effect was to transfer the risk from the banks to the government which ended up with significant losses on these transactions. ... Second, with the state taking over their bad debts, the banks had no incentive to work out restructuring or payment terms with affected enterprises. Third ... Medium risk: bank consolidation Despite its high cost, the loan acquisition strategy did not resolve the banking crisis.
|Title||:||Fiscal Adjustment in Hungary|
|Publisher||:||World Bank Publications -|