Varga calls FX loan conversion ‘historical’
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.