Banker: Moratorium on mortgaged property sale stifles loan market


Mortgage lending could become attractive again if the moratorium on the sale of the mortgaged properties is lifted, Raiffeisen Bank CEO Heinz Wiedner was cited saying yesterday at a conference, according to Hungarian news agency MTI. In the current regulatory environment, mortgage lending amounts to uncollateralized lending in Hungary, Wiedner said.

FHB Bank CEO Gergő Soltész, however, said he saw expansion of mortgage lending, and said he expects fierce competition among banks during the conversion of FX loans into forint loans.

The two senior bankers responded to recent comments of National Bank of Hungary managing director Márton Nagy, who said that competition could help carry out the government's planned conversion of FX retail loans into forints without a rise in the interest rates, and that the resulting need for competitive pricing could help revive the country's mortgage market.

Adressing the conference Thursday, Nagy reiterated that borrowers will be free to take out the forint loans from any bank when converting their FX loans into forints. Pricing, however, will have to be transparent, meaning either a fixed interest rate or a fixed spread, he added.


Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest


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.