Hungary to impose forex debt scheme on banks

Hungary has dismissed proposals from the country’s banks to address the issue of foreign currency loans, and the government will now impose its own plan, Economy Minister Mihaly Varga said on October 28. The move will leave the financial sector on tenterhooks in the coming weeks, Business New Europe reports.

The Hungarian Banking Association announced on October 26 that it had submitted a proposal to the government the previous day, beating a November 1 deadline to come up with a solution to the problem of the huge volume of Hungarian mortgages that had been taken out in Swiss franc and euro. However, it has taken the government just one weekend to reject the plan out of hand.

Source: http://bne.eu/