Budapest (MTI) – It will not be necessary to amend the 2016 budget as a result of the conversion of FX-based personal and car loans to forint-based loans, the economy minister said on Wednesday.

Mihaly Varga told public news channel M1 that the 31 billion forints (EUR 100m) subsidy to lower conversion rates will not need to be paid within one year, in equal parts by the government and the banks, because the loans have two to five years maturity.

Only a few billion forints will need to be allocated for this purpose by the banks and in the central budget each year, so it will not be necessary to amend the 2016 budget, he said.

Parliament is to discuss and pass the necessary legal amendments in September and the new loan contract details will be fixed by December 1, he said. Clients will be informed about the new figures from December 15, he added.

Photo: MTI

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

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