As of July 1, the current central support scheme offered to young Hungarian homemakers will be scrapped, but the government said it plans to introduce a new system from October, the daily Világgazdaság reported.
The revised funding would be available to those under 35 years of age for the purposes of buying new homes or refurbishing residences. However, these loans would be issued with far more stringent terms of evaluation and the rate of central support would almost be halved, resulting in subsidies of hardly more then 10%.
Market analysts surveyed by the paper said these changes could practically kill the market for forint-denominated loans, as the market would completely lose competiveness. (Gazdasági Rádió)