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Over 29,000 borrowers repay FX mortgages into first four weeks of scheme

Data published by financial market regulator PSZÁF show that 29,427 borrowers availed of an early forex mortgage repayment scheme at discounted exchange rates between September 29, when the scheme was launched, and the end of October.

The repayments came to HUF 130.6bn at the scheme’s discounted exchange rate and HUF 174.8bn at current exchange rates. Banks must cover the difference.

Banks signed 485 forint loan contracts for a combined HUF 2.27bn with clients who used the credit to repay their forex loans.

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, well under the 247.4 market rate late in the morning on Tuesday.