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OTP launches forex mortgage loan with exchange rate guarantee

OTP Bank Rt launched on Monday a guaranteed-exchange-rate CHF-denominated mortgage loan for home purchases and other purchases. The bank will guarantee an exchange rate of Ft 166 to the Swiss franc for the loans, deputy CEO Csaba Lantos said. He added that the bank expects the new offer to result in new CHF-denominated bank loans worth Ft 30 billion by the end of March. Foreign currency-denominated loans accounted for Ft 106 billion of the bank's total stock of Ft 1,055 billion of home loans and accounted for much of the 30% increase of overall home loans from 2004. Foreign currency- and forint-denominated home loans account for 26% of Hungarian banks' total stock of loans. The total stock of loans is equivalent to 80% of GDP. The proportion of home loans to GDP has risen from 8.2% in 2003 to 10%, Lantos said.