After several rounds of reform, credit decisions often remained unrelated to the past profitability or creditworthiness of the potential borrower, and the government often used the credit system to bail out enterprises operating at a loss. In cooperation with other banks and financial institutions, the Hungarian National Bank issued "Guiding Principles on Credit Policy" as part of the state five-year plan. Credits were extended under varying conditions, with different interest rates, maturities, and priorities to influence development in harmony with the national plan. The directives of the Hungarian National Bank were binding on all other parts of the banking system.
Data as of September 1989