Gov’t, banks meet to discuss solution to FX loans problem

MNB

Representatives of the Hungarian government and the Hungarian Banking Association met on Wednesday to find a joint solution to the problem of FX loans. Government commissioner for financial protection György Doubravszky said a fundamental question that needed to be addressed was whether the loans were actually in foreign currency or were only forint loans denominated in foreign currency. Experts on FX lending participated at the talks on Wednesday. The sides will meet again next on Tuesday. Doubravszky proposed the talks earlier. He also urged an extension of the moratorium on evictions by 45 days from March 1. Hungarian households borrowed heavily in foreign currency when the forint was strong and FX loans were cheaper than forint ones. But the weaker forint raised repayments on the FX loans, causing the number of distressed borrowers to swell.

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