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András Becsei, who also heads the retail division of OTP Bank, Hungary’s biggest commercial lender, said around 220,000 mortgage loans were affected by the blanket measure, but just 19,000 borrowers were “vulnerable”, according to the National Bank of Hungary (MNB), including ones whose monthly installments would climb over HUF 5,000 in the absence of the measure and whose repayments were over 40% of their monthly income.
Legislation drafted by the government and posted online for the social consultation would repeal the blanket rate freeze for retail borrowers, in force since January 1, 2022, after September 30.
The measure is “unsustainable” and benefits “such borrowers who are not in need of any assistance”, according to the draft which proposes renegotiation and restructuring as the better solution for troubled borrowers.
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