Croatia, Poland ask to see FX phaseout details
The governments of several Central European countries want to see details on how Hungary is phasing out foreign currency-denominated retail loans, the National Economy Ministry reported late yesterday.
Croatian and Polish finance ministries directed queries at the Hungarian ministry regarding information, and the European Central Bank was reported to be observing the process of phasing out FX loans. The ministry noted, that Swiss-franc based retail loans caused a significant problem in Croatia and Poland as well.
"In the interest of successfully managing the problem of FX loans, the National Economy Ministry is gladly sharing Hungary's experience and solutions till now with ministers in interested countries," the ministry said.
In line with the legislation approved in November, Hungary is in the process of phasing out the FX lending stock and has set the rate for the conversion of loans into forints at HUF 256.5 to the Swiss franc and HUF 309.5 to the euro. As a result, most Hungarian borrowers were spared the effect of the Swiss franc's sharp strengthening after the Swiss National Bank removed the currency's cap against the euro, according to Hungarian news agency MTI.
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