The Hungarian Banking Association on Thursday said it does not support a temporary government freeze of mortgage loan interest rates.
“The Banking Association cannot support the temporary interest rate freeze, to the detriment of the Hungarian banking sector, for clients who decided to take out riskier, floating-rate loans in spite of several warnings to the contrary,” the professional body said.
Prime Minister Viktor Orbán announced on Wednesday that the government decided to freeze interest rates on mortgages, at end-October levels, until the end of June 2022.
The association said it had “learnt with surprise” about the measure on Wednesday.
It noted that Hungarian lenders, in cooperation with the National Bank of Hungary (NBH), have in recent years offered to switch clients’ floating-rate credit to fixed-rate loans, drawing attention to the benefits of fixed-rate loans in public forums and among their clients.
The association pointed to the banking sector’s “contribution to pandemic defence” in the form of paying a sectoral tax and participating in a repayment moratorium that extended for a longer period than any other one in Europe.
A government decision to freeze retail mortgage rates until the end of next June could save Hungarian households 30 billion forints (EUR 81.3m), Csaba Dömötör, a Prime Minister’s Office parliamentary state secretary, said on Thursday.
The decision about the six-month freeze from January was
announced by the prime minister on Wednesday.
The interest rates on retail mortgages will be frozen at their end-October levels, meaning that the monthly installment for February will already be lower than previous ones, Viktor Orbán said.
Dömötör said that around half a million Hungarians have floating-rate mortgages.
Without the measure, accelerated rate rises from October could have added 23 percent, or an average 11,000 forints, to borrowers’ monthly installments, he said in a video message posted on the government’s Facebook site.
Read also Government to freeze retail mortgage interest rates
Source: MTI
3 Comments
I don’t remember so much Election Bribes before the election….he is in PANIC.
Corrupt SOB.
Pure panic mode before the election which is making him throw money around left right and centre. He should listen to the Banking Association, they won’t be happy with his reckless decisions. We’ll all end up paying somewhere along the line, regardless of who wins.
The Government – WRONGFULLY – continue to IGNOR – the advice – of – The Govenor of the Central Bank of Hungary – Gyorgy Matolcsy, his platform, expressed over MONTHS – to the present Government, the NEED – of immediate changes, in the direction – Economically & Financially – the Government – continue to PURSUE.
Gyorgy Matolcsy – when he Advises and SPEAKS – the Government and ALL – should LISTEN.
Gyorgy Matolcsy – within his “Platform” – the IMMEDIATE need of the Government to – Rebalance & Restructure.
The on-going course of this Government, that decisions being made – through vote searching – encased – in propaganda – Lacking truth & candour – just focused on vote gaining for the up-coming National Elections in April/May 2022 – sadly – add, to the WORSENING of the Government Debt situation, that WILL ultimately – fall back on citizens to Pay, through there Taxes.
Gyorgy Matolcsy – within his “Platform” over months has RECOMENDED & Advised the present Government – to cut its SPENDING.
Rising – Govermental Debt – that indicators – used Internationaly, to gauge and access – the performance of a Countrys – Economic & Financial – PERFORMANE – they ALL – heading in direction, that Highlights, the Economy – of Hungary – is under MASS stress – looking Weak and highly vulnunrable – endangered.
When – Gyorgy Matolcsy – when he – Speaks and Advices – Listen.