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Regulator to create guide for forex mortgage holders

Hungarian financial market regulator PSzÁF is writing an information guide on the government's assistance package for borrowers with foreign currency-denominated mortgages and will put a calculator that measures the benefits of the plan on its website, PSzÁF deputy chief László Balogh told Parliament's Consumer Protection Committee on Tuesday.

The five-point action plan, fleshed out in an agreement between the government and banks, is no "miracle drug" but it will help those borrowers who are in really difficult situations, Balogh said.

The government and banks announced the package last week.

Under one of the points in the package, borrowers with mortgages denominated in Swiss francs, the most popular currency for lending in Hungary before such products were banned, could choose to make repayments at a fixed rate of HUF 180 to the franc until the end of 2014.

The rate is about 17% stronger than the present market rate. Rates were also fixed for euro- and yen-based loans in the agreement.