Bloomberg News

Hungarian Borrowers Repay $1.5 Billion in Foreign-Currency Loans

December 06, 2011

Dec. 6 (Bloomberg) -- Hungarian borrowers repaid 338.9 billion forint ($1.5 billion) in foreign-currency loans by Nov. 27 under a government program allowing mortgages to be terminated at below-market exchange rates, financial regulator PSZAF said.

Repayment of the 54,563 loans involved amounted to 248.4 billion forint at the discounted rates of 180 forint per Swiss franc, 250 per euro and 200 forint per 100 yen, PSZAF said on its website today.

The figures published by PSZAF are in line with comments by the watchdog’s chairman Karoly Szasz on Dec. 4 that the program cost the industry 90 billion forint in the first two months it was in effect.

Hungarian lawmakers approved legislation on Sept. 19 that allowed early repayment of foreign-currency home loans, forcing lenders to take losses. The law may “substantially weaken” financial stability and poses risks to public finances, the European Central Bank said last month.

--Editors: James Kraus, Tim Farrand

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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