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Special loans available to local councils

The government decided at a cabinet meeting on Wednesday to make preferential loans, without down payments, from the Hungarian Development Bank (MFB) to local councils in order to help them support purchases of homes for borrowers who have fallen on hard times, minister for social policy Péter Kiss said.

Local councils may avail of the HUF 60 billion in MFB's existing rental home loan program to support the purchases, Kiss said. The conditions for the loans will remain unchanged: they shall have runs of 25 years plus a three-year grace period, and the rate shall be 2.5% over the three-month Euribor.

The law allowing the local councils to purchases the homes of residents close to default, then rent them to their former owners, will come into force on September 1. (MTI-ECONEWS)