Varga: Hungary has no CHF debt left

MNB

Following the Swiss central bank’s decision yesterday to abandon the fixed conversion currency rate policy, it is even more apparent that the Hungarian government saved Hungarian households from a total HUF 500 bln in FX debt with the decision made last December to convert FX loans into HUF loans, Mihály Varga said in an interview published on the government’s official website yesterday.

Varga went on to say that foreign exchange debt must be phased out of the banking system. It is not clear, however, if he was referring to mortgages only, or FX loans of all kinds, including vehicle financing for example.

Varga emphasized that Hungary’s CHF exposure in state debt is non-existent, since the municipality loans were paid back during 2014 and all other FX debts were traded in for euro debt. Varga also said that the debt reduction remains an important goal as does the decrease in the proportion of foreign currency denominated debt.  

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