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Cost of bailing out troubled borrowers should be shared, says PM

Prime Minister Viktor Orbán aims to balance the cost of bailing out Hungarians who cannot make payments on their foreign currency-based home loans because of exchange rate changes between the budget, the banking system and borrowers, Orbán said on his Facebook page on Friday.

“For my part, I do not support any proposal in which the price of loans signed for by banks is paid on the account of the budget. That would be unacceptable, as those who strive to pay back their loans would have every right to feel this solution is unjust,” Orbán said. “For this reason, it is our aim to proportionally divide between Hungary's budget, the banking system and borrowers the cost of home loans on which borrowers have defaulted because of exchange rate changes,” he added.

Orbán confirmed earlier government plans to establish a national asset manager to help the troubled borrowers. He said plans are being worked out and talks are ongoing on how to share the cost of the assistance.

"Reaching an agreement will not be easy," he said.