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Interest picks up for exchange rate limit scheme

The number of borrowers with foreign currency-denominated loans interested in participating in an exchange rate limit program has jumped since the beginning of May, when the scheme was opened to non-public sector workers, lenders told MTI.

Under the exchange rate limit scheme, borrowers may opt to cap their repayments based on the limit. The difference between the rate of repayment and market rates is to be placed on a separate account for later repayment. OTP Bank Nyrt said the number of clients enquiring about the scheme has risen since May 2.
About 110,000 of the bank's clients with forex property loans qualify to participate in the scheme, it added. The number of contracts for the scheme the bank has signed with clients employed in both the public and private sectors is in the thousands.
K and H Bank Zrt said 3,500 of its clients had applied to joint the scheme, so far. More than half work in the public sector, it added.
Raiffeisen Bank Zrt said several thousand clients had applied to join the scheme. After the scheme was made available to all clients with forex mortgage home loans, the number of applications tripled, it added. CIB Bank Zrt said more than 4,000 people had enquired at branches and more than 2,000 using its telebanking service.
CIB Bank has so far accepted applications from more than 1,500 public sector workers to joint the scheme. Under recently approved legislation, the government is shouldering all of the interest costs on the separate accounts related to the exchange rate limit scheme.