FX mortgage exchange rate limit scheme participation rate could reach 90%

MNB

As many as 90% of Hungarian borrowers with foreign currency-denominated mortgages could join a scheme that caps the exchange rates for repayments, Hungarian Banking Association chief secretary Levente Kovács said in a radio interview late Monday.

Between 50% and 90% of borrowers with the loans could join the scheme, Kovács said.

Borrowers have until the end of 2012 to join the scheme which runs until the end of June, 2017.

Under the scheme, the difference between the rate of repayment and market rates is to be placed on a separate account for later repayment. Banks and the government are to share in equal part the interest costs on the separate account.

Kovács said cooperation between the government and the banking sector had become more transparent and more constructive in the recent period. He added that bank's expect a predictable environment from the government as well as that all economic players and all branches carry the burden proportionally.

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