Banks fix exchange rate of FX car loans

Budapest, August 24 (MTI) – Banks will fix the exchange rate of foreign currency car loans on Monday, when the National Bank of Hungary (NBH) holds the first tender to provide them with the foreign currency necessary for converting the loans.

The conversion rate will be 287.20 forints to the Swiss franc, NBH managing director Marton Nagy told public news television channel M1 today.

Hungarians have more than 200,000 FX vehicle loan contracts totalling almost 300 billion forints.

Borrowers will be sent a letter on Dec. 15 detailing the amount of their debt, the new interest rate and the repayments.

The government and the Hungarian Banking Association signed an agreement on Wednesday on the forint conversion of FX car loans. The state and the banks will provide half and half of 31 billion as assistance to effectively lower conversion rates.

(HUF 100 = EUR 0.3234)

Source: http://mtva.hu/hu/hungary-matters