Rogán: Legal solution could be option for forex loan problem


A legal solution could be the best option for Hungarian borrowers with foreign currency-denominated loans, Fidesz parliamentary group leader Antal Rogán suggested in an interview published in business daily Napi Gazdaság today.

“Although everybody is thinking about a business solution, why couldn’t a legal solution be considered, one based on court decisions until now, among other things?” Rogán said, pointing to precedents in Croatia and Turkey.

Hungary’s government has given banks until November 1 to find a solution to the forex-based loans problem based on consultations with borrowers. If the deadline passes without result, the government has said it will act unilaterally on the matter.

Rogán told the paper that an economic solution to the forex-based loans problem would involve dividing the burden between lenders and borrowers: “The state would have only a regulatory role, thus one doesn’t have to think about how to involve the state or even the central bank, rather about how a just situation can be created with strong regulation.”

Added Rogán, “The two main goals are to reduce the burden of repayments for FX borrowers and to eliminate exchange rate risk.”

He said that if a fixed exchange rate is chosen as a solution, it would have to be suitable for borrowers who have already joined a scheme that caps the exchange rate on repayments as well as for borrowers who are more than 90 days behind on their repayments.

Inexpensive, Swiss franc-denominated loans were once the most popular retail lending product in Hungary, until the forint weakened, causing repayments to increase and putting many households at risk of default.


Household income improved in Q1 Analysis

Household income improved in Q1

Ministers in new Orbán gov't sworn in Parliament

Ministers in new Orbán gov't sworn in

Spring’s allergy season - the heat is on Interview

Spring’s allergy season - the heat is on

Airport bus fare could rise to HUF 1,500 City

Airport bus fare could rise to HUF 1,500


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.