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Aid program borrowers to pay fixed notary fee

The government wants Hungarians who apply for an assistance program for borrowers with foreign currency-denominated loans to pay a single, fixed notary fee, the amount of which will be published in a decree next week at the latest, the State Secretariat for Government Communications said late Thursday.

The statement followed talks by representatives of the Public Administration and Justice Ministry, the National Economy Ministry, the Hungarian Banking Association and the Hungarian National Notary Chamber. The sides agreed that participants in the assistance program would pay no fees but the notary fee.

The Hungarian National Notary Chamber proposed earlier the fee to be HUF 10,000-20,000 per modified contract.

Hungarians may opt to join the assistance program from Friday. Repayments or those who do join will be calculated using a fixed exchange rate for a period of 36 months but no longer than the end of 2014. The rate for Swiss franc-denominated loans ─once the most popular retail lending product in Hungary ─ is set at HUF 180 to the franc. The rate for euro-denominated loans is set at HUF 250 to the euro, and the rate for yen-based loans is set at HUF 200 to 100 yen.

The balance resulting from the difference between the fixed rate and the market exchange rate will be put on a special, forint account. The interest rate on the special account is to be pegged to the three-month BUBOR.