Fundamenta-Lakáskassza sees early FX repayment scheme raising outlays by HUF 10bn in 2011

MNB

Fundamenta-Lakáskassza, one of two home savings banks in Hungary, expects the government's early forex mortgage repayment scheme to add about HUF 10bn to planned outlays this year, chairman-CEO Károly Gergely told portfolio.hu.

Before the scheme was launched, Fundamenta-Lakáskassza targeted outlays of HUF 35bn, Gergely said.

He said the bank had no liquidity problems and its capital adequacy ratio was at 11%, well over the 8% minimum requirement, but its parent had "high expectations", thus the bank would not lend "any sum of money" but would limit bridging forint loans for the repayment of forex loans to clients with deposit contracts signed before August 31, 2011.

The government scheme, launched at the end of September, allows early repayment of foreign currency-based mortgages at a discounted exchange rate. Lenders are covering the difference between the discounted exchange rate and the market rate. Borrowers must declare intent to participate in the scheme by the end of 2011 and make full repayment within 60 days after that.

Fundamenta-Lakáskassza is majority owned by Bausparkasse Schwabisch Hall.

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