Savings cooperatives try to win back clients with forint loans for early FX repayment scheme


Hungary's savings cooperatives are offering forint loans to borrowers who want to avail of an early forex mortgage repayment scheme with the aim of winning back clients they lost earlier, the National Association of Savings Cooperatives (OTSZ) told MTI on Tuesday.

The savings cooperatives are offering the loans at an APR of 10-11%, although each of OTSZ's 108 members will have a degree of independence when determining conditions, OTSZ said.

Under a scheme launched by the government at the end of September, borrowers may repay early, in full, their foreign currency-denominated mortgages at a discounted exchange rate until the end of December. Banks are covering the cost of the difference between the discounted exchange rate and the market rate.

Interest rates on the loans savings cooperatives are offering will be pegged to the six-month BUBOR. The loans will be offered until the end of the year.

Just 1.4% of the some HUF 6,000bn in foreign currency-denominated lending stock in Hungary is on the balance sheets of OTSZ members. The members have almost HUF 600bn in forint resources for lending and a capital adequacy ratio double the 8% minimum requirement.


Job ads in hospitality, tourism sector grow drastically  Analysis

Job ads in hospitality, tourism sector grow drastically 

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


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.