Loan conversion to happen in early 2015
The Justice Ministry said that a bill on FX loan conversion will make it possible to carry out the conversion parallel with the compensation of borrowers, in the first half of 2015.
The ministry said in a statement that it expects to submit a bill on "fair banks" to Parliament on Tuesday and the bill on the conversion of FX loans into forints could follow on Friday. The bill on fair banks will specify stricter conditions for retail loans, taking into account consumer protection aspects.
The FX loan conversion bill will apply only to mortgages, the Justice Ministry said. The bill will specify, however, that banks must apply the new conditions set by the fair banks legislation to all earlier FX-based retail contracts, the ministry added. The loan conversion bill is based on an agreement between the government and the Hungarian Banking Association, the ministry said.
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