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Over 23,000 borrowers repay FX mortgages early in first three weeks of scheme

Financial market regulator PSZÁF figures show that 23,046 borrowers availed of an early forex mortgage repayment scheme between September 29, when the scheme was launched, and October 23, PSZÁF head Károly Szász said on Thursday.

The repayments reduced lending stock by HUF 133.8bn, at current exchange rates. The discounted exchange rate the borrowers enjoyed generated a loss of HUF 33.4bn for banks, he added.

An additional 43,067 borrowers with outstanding debt of HUF 295.7bn, at current exchange rates, declared their intent to join the early repayment scheme, he said. Banks stand to lose some HUF 71bn on these repayments, he added.

The figures compare to a HUF 5,240bn foreign currency denominated retail loan stock at the end of September. Foreign currency denominated loans make up about two-thirds of the total retail loan stock, figures of the National Bank of Hungary show.

Borrowers must apply to join the scheme by the end of 2011. They must complete repayment, in full, within 60 days after submission of the application.

Borrowers with Swiss franc-denominated mortgages, earlier the most popular retail lending product in Hungary, may make full repayment at a HUF/CHF rate of 180, more than one-quarter under the 250.9 market rate in the afternoon on Thursday. The HUF/EUR rate for euro-denominated loans under the scheme is 250, also well under the rate of about 305 on Thursday.