MNB sells banks CHF 592 mln to cover FX car, personal loan conversion

MNB

The National Bank of Hungary (MNB) said it sold CHF 591.9 mln to lenders in a tender on Monday to cover the conversion of their remaining stock of retail FX loans, Hungarian news agency MTI reported yesterday.

Ten lenders bought a combined CHF 550.2 mln directly from the central bank and four others purchased a further CHF 41.7 mln through umbrella banks. Hungaryʼs government signed an agreement with the Hungarian Banking Association last Wednesday under which lenders will convert about HUF 305 bln of their FX vehicle and personal loans at the request of clients.

Hungarian banks earlier converted their stock of FX mortgages. Comparatively low-interest, Swiss franc-based loans were once the most popular retail lending products in Hungary.

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