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Significant part of eligible borrowers expected to participate in exchange rate limit scheme

A significant part of the 420,000-450,000 Hungarian borrowers eligible to participate in an exchange rate limit scheme are expected to avail of the opportunity, National Economy Ministry state secretary Gyula Pleschinger said in Thursday's issue of daily Magyar Nemzet.

Public sector workers, who have been able to participate in the scheme since April, have not rushed to their lenders, but bank branches are expected to become very busy from May, Pleschinger said.

The scheme will be open to all borrowers with foreign currency-denominated home loans from May 2.

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. Banks and the government will share in equal part the interest costs on the separate account.

Borrowers who took out loans up to HUF 20 million may participate in the scheme.