Hungary local govts seek 1-yr delay in principal payments

History

Hungarian local governments are seeking a one-year delay in principal payments on about HUF 600 billion ($3.18 billion) worth of debt issued in 2007-2008 due to gains in the Swiss franc, reports Reuters quoting a top official said on Wednesday.

"The Alliance of Hungarian Local Governments has a proposal, which we will present in a letter to Prime Minister Viktor Orbán today," György Gémesi, Chairman of the body told public radio MR1-Kossuth in an interview.

"These are mainly bonds issued with a 20-year tenor and if the start of principal payments is delayed by one year, this will mean a lower burden for (the remaining) 17 years (of the repayment period) than what this 250 Swiss franc level means."

Gémesi added that based on informal talks, banks seemed open to this idea.

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