Banks told to foot notary bill in mortgage aid program - newspaper

Initiatives

The government will pass the cost on to banks of a notary fee for Hungarians who opt to participate in a state assistance program for borrowers with foreign currency-denominated loans, daily Magyar Nemzet said on Friday.

A source who participated at a cabinet meeting on Wednesday and did not wish to be named told the paper that a decree on making banks pay the fee had already been drawn up and needed only the signature of Public Administration and Justice Minister Tibor Navracsics.

The assistance program, launched on Friday, fixes the exchange rate for repayments on the loans and puts the difference between the fixed rate and the market rate on a separate forint account to be repaid later. The program's rate for Swiss franc-based loans -- once the most popular lending product in Hungary – is HUF 180 to the franc, well under the market rate of just under 242 early Friday.

The government said the notary fee would be fixed when the package was launched.

The Hungarian National Notary Chamber proposed earlier the fee to be set at HUF 10,000-20,000 per modified contract.

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