Association seeking to improve position of FX borrowers meets with Matolcsy again

EU

An association seeking to improve the position of Hungarian borrowers with foreign currency-denominated loans met for further consultations with National Economy Minister Gyorgy Matolcsy on Tuesday, the ministry told MTI.

The association, dubbed Hiteltarsulas, or "Credit Association" in English, was recently established by borrowers disappointed with their chances of joining a government scheme allowing full early repayment of foreign currency-denominated mortgages at a discounted exchange rate. The association first met with Mr Matolcsy late in October.

At the meeting on Tuesday, the association agreed in principle on the establishment of a bank to be owned by the state and private individuals, said Hiteltarsulas founder Gyorgy Doubravszky. The state would hold a 49% stake in the bank, to be called Webbank, and private individuals would hold 51%, he added.

The association also asked the minister to have the government or financial market regulator PSZAF draw up a uniform application for joining the early repayment scheme.

Hiteltarsulas has so far collected and delivered to the ministry more than 2,000 proposals on improving the situation of Hungarian borrowers with forex loans.

In just one week, some 2,500 private individuals with HUF 11bn in savings, as well as 1,300 businesses have joined the Webbank initiative.

Webbank would be a "low-fare" internet bank without any bricks and mortar branches, according to the website for the initiative. It aims to "cover the entire scope of the ‘FrancTrap’ problem," says webbank.hu.

ADVERTISEMENT

17% of homeowners plan renovations this year Analysis

17% of homeowners plan renovations this year

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.