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Asset manager to buy homes of troubled mortgage holders

The National Asset Manager, a company to be set up by the government to purchase the homes of troubled foreign-currency-denominated-loan borrowers under a government assistance scheme, is expected to be established by the end of August, a government resolution published in the Official Gazette on Tuesday shows.

The National Economy Minister has until July 31 to work out the operating conditions of the company with the help of the National Development Minister, the resolution said. The same deadline applies to economy minister György Matolcsy to ensure the necessary funding for the operations of the company through a rechanneling of budget funding.

The National Asset Manager must be set up within 30 days after securing the necessary resources. National Economy Minister Tamás Fellegi will be responsible for establishing the company through the state assets management company MNV.

Parliament last week passed legislation that aims to assist Hungarians with foreign-currency-denominated mortgage loans. The bill fixes the exchange rates on repayments for borrowers. A national asset manager that will buy properties of troubled borrowers and allow them to remain in their homes as renters is part of the assistance scheme. Earlier, Matolcsy said "a few thousand" homes could be taken over by the assets manager in 2012.