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UPDATE - Over 94,000 borrowers repay FX mortgages in first three months of scheme

Fresh data published by financial market regulator PSZAF show that 94,337 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 December, the deadline for declaring intent to participate.

The repayments came to HUF 468.0bn at the scheme’s discounted exchange rate and HUF 642.1bn at current exchange rates. Banks must cover the difference between the two rates.

The average repayment was HUF 5.0m. Most of the loans were repaid at commercial banks.

About 97% of the repayments were for Swiss-franc denominated mortgages. The rest were for mortgages base in euro or yen.

Banks signed 16,865 forint loan contracts for a combined HUF 88.5bn with clients who used the credit to repay their forex loans during the period. About HUF 43.0bn of the loans were from borrowers’ original lenders and HUF 45.5bn of the loans were to cover repayments at other banks. About HUF 25bn of the loans were from savings cooperatives.

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