Economy Ministry, Banking Association Discuss Phasing Out FX Loans

(MTI) – Representatives of the economy ministry and the Banking Association held consultations on Tuesday about how to phase out loans denominated in foreign currency, the ministry said.

The ministry is drafting various proposals to prepare for a crucial decision by the Kuria, the supreme court, the ministry told MTI in a statement.

The court recently said a provision in an individual FX mortgage contract on the exchange-rate spread was invalid. It is expected to make a legal-uniformity ruling on several issues related to FX loans on June 16.

The ministry said it had drafted its proposals so that it would be able to act swiftly after the Kuria’s decision.

It said that the ministry’s top officials had continued to hold consultations on resolving the issue of FX mortgages with interested parties since “there are many possible solutions”.

The ministry said it had prepared all background calculations and analyses as well.

The government’s aim remains to completely phase out FX loans from Hungary’s financial market with the interests of loan-holders, the state and banks taken into consideration, the ministry said.

Measures implemented by the government have so far helped 450,000 FX mortgage holders, it added.

Photo: MTI – Noemi Bruzak

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