AXA Bank launches Credit Shield program
The Hungarian unit of the banking arm of the French AXA insurance group on Friday launched a programme to help borrowers manage exchange-rate fluctuations and possible rising interest on the Swiss franc, the unit announced.
The programme is designed to serve as a supplement to the government's Home Protection Action Plan aimed at helping those with foreign-currency-denominated mortgages to make repayments.
The program, called Hitelpajzs (Credit Shield), is composed of the HaviFix (Monthly Fixed) programme and the KamatPajzs (Interest Shield) programme.
The Monthly Fixed stipulates that later payments on loans denominated in Swiss francs, euros or forints will be calculated at an exchange rate diverging no more than 10pc from payments made in the initial period. Any difference between Monthly Fixed payments and payments that would be due according to market exchange rates will be passed on the debtors by either lengthening or shortening of maturities.
The KamatPajzs (Interest Shield) program is intended to protect borrowers with Swiss-franc-denominated loans from possible interest-rate hikes over an expiration period of five, ten or twenty years.
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