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Govt offers fixed-rate plan to public workers under mortgage aid program

Hungary’s government aims to help public sector employees struggling to pay off their foreign currency-denominated mortgages with a fixed exchange rate construction, rather than by converting their forex debt into forint loans, daily Magyar Nemzet said on Friday, without citing any sources.

According to earlier reports in the Hungarian press, the government wanted public sector workers to take out forint loans, with a two-percentage-point interest rate subsidy, that they could use to participate in an early forex mortgage repayment scheme at discounted exchange rates. Magyar Nemzet learnt this concept was not put on the agenda at talks between National Economy Minister Gyorgy Matolcsy and Hungarian Banking Association chairman Mihaly Patai on Thursday. Rather the government wants to ease the debt burden for public sector workers in the framework of a fixed exchange rate construction with a preferential interest rate, the paper said.

The concept is being fleshed out and is expected to be implemented in April, it added.