Varga: no FX loans by year's end
All foreign-currency denominated loans would be eliminated from the Hungarian lending market by converting them to forint loans by the end of 2014, National Economy Minister Mihály Varga announced yesterday.
In giving detail on the recently passed FX loans law, Varga said that bank calculations are expected to be done by September and October, and that is when we will now how much borrowers should be repaid. While he said we don't know the numbrs now, Varga added that the recalculated instalments will be significantly lower than before, the minister added.
Varga rejected the proposal made by the Banking Association, namely to apply an exchange cap to all the FX loans. According to Varga it is very important that the clients “feel that the issue has been settled in a fair way, either through lower instalments or an amount credited to their account.”
Further laws regulating the repayments are to be enacted in the fall.
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