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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.

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