FX loan conversion to take place at market rates

History

Mortgages denominated in a foreign currency will be converted to forint-based loans at the average exchange rate since the supreme court's relevant decision in the summer or at the central bank's rate on November 7, 2014, the economy ministry and the National Bank of Hungary (MNB) said on Sunday.

The government, the central bank and Hungarian Banking Association reached the agreements necessary for the conversion, the ministry and the MNB said on Sunday.

Of the two rates the bank will apply the one that is better for the borrower, the ministry said in a statement.

According to the statement sent to MTI, the central bank will provide the full amount of foreign currency required for the conversion.

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