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Varga calls FX loan conversion ‘historical’

Analysis

Hungary’s economy minister Mihály Varga referred to the February 1 foreign-currency-denominated home loan conversion into forints as a “historical balance sheet close”, at a press conference on Saturday.

As of February 1, FX home loans and problems associated with them will disappear from the domestic financial system, the minister said. Varga added that “on the same day” refunds that banks are required to pay borrowers for making unilateral changes to contracts and for using exchange rate margins to calculate repayments will start, and legislation on fair banking practices will come into effect.

The economy minister noted that the conversion had prevented borrowers’ from witnessing the growth of their debts with an additional accumulated HUF 1 trillion.

According to Varga, the Hungarian government's measures to defend Hungarian families has established a precedent in Europe and has garnered praise for Hungary in the international press.

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