Market researcher warns of new Swiss franc trap

Food

Hundreds of thousands Hungarian home savings bank account holders could face financial difficulties from 2014 as their Swiss-franc-denominated loan installments could surge by up to 40% from that year because of a special plan offered in 2006-2008, which fixed installments for the first eight years, market researcher GKI said.

After preferential fixed period ends from 2014, the size of installments will be recalculated according to the outstanding capital and the current Swiss franc rate.

Most of these loan holders currently pay their monthly installments based on Swiss franc rate of HUF 160, which will jump to about HUF 230-250 once the preferential period expires in 2014.

In the case of Swiss-franc loans, some 210,000 families could face financial difficulties as a result, GKI said in its study.

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