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Hungary may build social housing for troubled borrowers

The interior ministry has proposed  building homes in the first phase of the government's program to help borrowers defaulting on their housing loans in Ócsa, some 30 kilometers southeast of Budapest.

According to a proposal published on the ministry's website on Tuesday, the controlled-rent units would be built on 1,000-square-meter plots, offering tenants the opportunity to grow their own vegetables.

Details of the ministry's plans will be disclosed once the government adopts the proposal, the website said.

Analysts fear that the unprecedented strengthening of the Swiss franc will cause borrowers to default on their payments en masse. Many borrowers took out CHF-based housing loans when the forint was at levels around 165 - compared to the current rate above 270.