The government plans to offer the interest subsidies to Hungarians with forex mortgages more than 90 days behind on repayments who decide to buy a smaller, cheaper home, Matolcsy said. The subsidy, which eligible borrowers may avail of for at most five years, will be pegged to 50% of the benchmark government securities’ yield in the first year but be reduced gradually to 30%.
The plan for the interest subsidy system was unveiled as part of an assistance package for troubled borrowers with foreign currency-denominated loans in May 2011, the Minister recalled.
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