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Parliament approves forex loan payback option

Hungary's parliament on Monday evening gave the green light to the ruling Fidesz party's scheme to offer holders of foreign currency-denominated mortgages the option to pay off their loans at preferential rates. 

The bill, submitted by Fidesz MP Antal Rogán, was passed into law with 277 votes for, 9 against, while 30 deputies abstained from voting. The motion was supported by deputies of Fidesz and of radical nationalist Jobbik.

The Socialists voted against and green opposition LMP abstained. Under the new law, troubled borrowers can make a full repayment at HUF 180 to the Swiss franc, HUF 250 to the euro and HUF 2 to the Japanese yen, unless the rate of the forint was not higher at the time of taking out the loan.

The law also gives borrowers the deadline of December 30 this year to indicate their participation in the program.