Dec. 15 (Bloomberg) -- Hungary’s government and commercial banks have agreed to burden-sharing on foreign currency mortgage loans, Economy Minister Gyorgy Matolcsy said.
Banks will assume two-thirds of the loan burden above 180 forint per Swiss franc, costing them 600 billion forint over five years, Matolcsy told reporters today. The government’s share is one-third, amounting to 300 billion forint, he said.
Foreign currency mortgage loans overdue by more than 90 days will be converted to forint and one-fourth of the oustanding amount will be written off, Matolcsy said.
The agreement is a “milestone” and “open to everyone” and should boost the forint, Bank Association President Mihaly Patai said. The duration of the agreement is five years.
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