Hungarian lawmakers earlier mandated the conversion of retail FX loans into forints at fixed rates. The rate for loans denominated in Swiss francs, once the most popular retail lending currency in Hungary, was locked in at 256.5 forints, a far more favorable rate to borrowers than the 296.7 official central bank exchange rate on January 30.
The MNB explained in a methodological note attached to the fresh data that banks are allowed to book FX loans affected by the mandatory conversion at the rate set by lawmakers “at their own discretion”, but they must continue to calculate forint values of FX loans, including those affected by the conversion, at the MNB’s official end-of-month mid-rates, in line with past practices.
Banks’ stock of retail deposits fell by HUF 89.4 bln to HUF 6.805 trillion in January. The MNB noted that the sharp decline, due to transactions, followed a big increase at the end of December as some employers brought forward payroll transfers due to variations in working days early in January.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
