The government seeks to reach a complex solution with the banks, Szijjártó said. The goal is to establish predictable repayments and to prevent the eviction of a single family.
The government seeks to reach a complex solution with the banks, which covers lending to SMEs among others, Szijjártó said. In the case of retail loans, the goal is to establish predictable repayments and to prevent the eviction of a single family.
The burden of the assistance will be shared by the banking sector, the state and borrowers, he said.
Retail borrowers with Swiss franc-based mortgages — more popular than forint mortgages before they were banned — saw their repayments rise as the forint weakened during the crisis, prompting Hungary’s previous government to introduce moratoriums on foreclosures and evictions by lenders. The moratorium has been extended several times, most recently until July 1, 2011.
Szijjártó said the agreement with banks has to allow for a restart of lending to SMEs. The government is making a home creation program a priority as well as incentives for long-term household savings, he added.
Reinstating the capacity of families to service loans will also require a government policy focusing on job creation, the spokesman said. The government plans to cut administrative expenses not only for businesses, but also for private individuals, and will review the fees of repossession agents and public notaries.
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