Big FX loan stock still biggest problem for retail borrowers

MNB

The large stock of foreign currency-based loans continues to pose the most serious problem in terms of financial consumer protection, Hungarian financial market regulator PSZAF said in a report on Thursday.

Foreign currency-based loans account for 70% of all retail lending stock at present, PSZAF said. About 95% of this stock is denominated in Swiss franc.

As repayments on these loans have grown because of the weaker forint, loan restructuring has become of paramount importance to troubled borrowers.

However, risk is present, from the consumer's point of view, if borrowers have no knowledge of constructions available for easing repayments or if they have insufficient information to take a decision on the matter, PSZAF said.

A broader adoption of loans linked to a transparent reference interest rate would reduce retail clients' vulnerability and risk, the watchdog said.

ADVERTISEMENT

17% of homeowners plan renovations this year Analysis

17% of homeowners plan renovations this year

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.