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New retail forex lending restrictions from Monday

The loan-to-value limits of the government decree on prudential retail lending restrictions are to come into effect on Monday.

Further restrictions, including payment-to-income limits will not come into effect until June 11.

Under the new rules, forint loans may not exceed 75% of the value of the property offered as collateral, while the same limit is 60% for euro loans and 45% for other forex-denominated loans. For financial leasing, the loan-to-value limit is 80%, 65% and 50%, respectively.

Similar restrictions apply to vehicle purchase loans as well, which now have a maximum maturity of 84 months. (MTI-ECONEWS)