Hungary seeks international advice on forex mortgage troubles
Hungarian Economy Minister György Matolcsy has sent a letter to Andrea Enria, chairman of the European Banking Authority, about the “serious problems” caused for households by loans denominated in Swiss francs, reports Bloomberg.
According to Matolcsy, the risks of foreign-currency lending should be curbed through consumer and “macroprudential” regulation in Hungary and on a European Union level. He asked for examples of countries which managed the problem more successfully, according to an e-mailed statement from the ministry.
Nearly two-thirds of Hungarian household mortgages were denominated in foreign currencies, most of them in the franc, as of June 30, according to central bank data. The forint has weakened 6.8% against the Swiss franc this year, swelling households’ mortgage repayment obligations.
The ministry will use the information received from the EBA in its work examining the roots of the lending problem, according to the statement.
ADVERTISEMENT
Bourse Turnover Reaches HUF 181 bln in November
India's G20 Presidency, Dawn of New Multilateralism - Narend...
Production Resumes at Ganz's Szolnok Plant
TikTok Commits to Improved Consumer Communication in Hungary
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.
.jpg)
