Austria to review legality of Hungary FX loan repayment scheme

History

Austria is reviewing the legality of a proposal by the Hungarian government to allow repayment of foreign currency-denominated mortgages at a fixed rate, Austrian Chancellor Werner Faymann said at a press conference after the weekly cabinet meeting on Tuesday.

Faymann said the Hungarians were aware of concerns by Austrian-owned banks about the plan.

"The next step will not be political reconciliation but rather a review of how legal [the plan] is," he said.

Prime Minister Viktor Orbán told MPs in parliament earlier on Monday that the government supports a proposal to allow Hungarians with foreign currency-denominated mortgages the chance to repay their loans in a single installment at a fixed exchange rate that is more favorable -- for borrowers -- than the market rate.

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