Job problems main reason for mortgage woes, says banking association head

In Hungary

While 8% to 10% of clients are facing financial troubles, over 90% have kept up with mortgage payments so far, Levente Kovács, Secretary General of the Hungarian Banking Association, stressed in a Wednesday morning statement on public television, reported Portfolio.hu

"In our experience, which may come as a surprise to many, the 8% to 10% of clients experiencing real financial problems are citing difficulties owing to job loss rather than as a result of currency rate fluctuation," Kovács said.

"Therefore, we should find a solution for people who have lost their jobs and are unable to keep up with payments." Those with a forint-denominated mortgage are facing the same issue [of job loss], Kovács added. 

He reminded that Hungary had a ban on repossessions during the past two years, which was lifted only recently. The new rules have allowed only 146 repossessions to commence in the first three months after the ban was lifted.

"It is in the banking sector's best interest to keep borrowers within the system. When a mortgage becomes a non-performing loan, the client is the number one loser, followed immediately by the bank as a close second as today's real estate prices make it impossible to sell the property at a profit," Kovács explained

ADVERTISEMENT

Industries lose billions on counterfeit products Analysis

Industries lose billions on counterfeit products

Parl't to vote on groundwork for commercial accommodation ra... Parliament

Parl't to vote on groundwork for commercial accommodation ra...

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest re-launches airport shuttle bus City

Budapest re-launches airport shuttle bus

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.