Orbán suggests state could help with cost of fixing FX loans

Competition

The new law on loans pegged to foreign exchange rates will usher in an era of 'fair banks', but will not do this in a way that hurts the banking sector, Prime Minister Viktor Orbán said in his weekly radio address today.

While banks are expected to face hundreds of billions of forints in new costs, due to the measure, the Prime Minister implied during his address on Kossuth Radio today that some of the costs could also be borne by the state.

A draft of the law was expected today, but it was not presented as of this afternoon. The law is expected to force banks to compensate Hungarian borrowers who were hurt by the dropping value of the forint because their loan repayments were denominated in foreign currency.

ADVERTISEMENT

Romania PPI Inflation Rises Further in August Analysis

Romania PPI Inflation Rises Further in August

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma... Government

Gov't Clears HUF 200 bln Aid for SMEs in Energy-Intensive Ma...

Blue Chip Art and Passion Assets - Claudia Worthington Hess ... Podcasts

Blue Chip Art and Passion Assets - Claudia Worthington Hess ...

Teachers' Strike Demonstration Attracts Thousands in Capital City

Teachers' Strike Demonstration Attracts Thousands in Capital

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.