Fidesz MP proposes tighter interest spread on converted loans

Analysis

The parliamentary group of the governing Fidesz party will initiate a tightening of the bill on FX loan conversions to prevent banks from circumventing the obligations to refund borrowers, group leader Antal Rogán told MTI on Thursday. 

The Fidesz MPs want to narrow the interest spread banks can use by nearly one percentage point, he said. Under the conversion bill before Parliament, banks will have to apply an interest rate pegged to the three-month BUBOR. The spread over the BUBOR should be the same as on the original loan, but is limited to a range of 2-5.5% for home mortgages and 2-7% for other mortgages.

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