Market researcher warns of new Swiss franc trap
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.