MNB: Half of non-performing mortgage loans could be restructured

MNB

Hungarian lenders could restructure the mortgage loans of half of the 130,000 Hungarians who have fallen three months or more behind on repayments, but this would require banks to be more proactive, as well as the cooperation of borrowers, National Bank of Hungary (MNB) managing director Barnabás Virág told journalists on Friday, according to Hungarian news agency MTI.

The MNB calculated that the average monthly repayment on non-performing mortgage loans is HUF 82,800, while the average borrower earns just HUF 109,300 a month, Virág said. 

Between 65,000 and 72,000 of the troubled borrowersʼ loans could be restructured, he said.

The average size of a non-performing mortgage loan is HUF 9 million, including a HUF 7.9 mln principal. The average market value of collateral on such a loan is just HUF 10.3 mln.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.