Banks report last-minute rush to repay forex mortgages – paper
Banks told the paper a last-minute rush of applications were being filed, and everyone was encouraged to apply by the deadline, even if they need more time to come up with the finances. Banks have put on extra staff to deal with the surge in customers.
The government has announced the introduction of forint loans with special conditions to help raise funds to pay off forex loans in a lump sum. Details on these loans, which include loans given by employers, are yet to be disclosed, the paper said.
Prime Minister Viktor Orban has addressed a letter to public-sector employees recently, encouraging them to take part in the scheme, saying it was important that they “escape from the forex debt trap”.
The forint currently fetches around 250 to the Swiss franc, one of the most popular currencies for mortgages, which is a big strain on borrowers who took out loans when it was around 165 to the franc. The government’s repayment scheme offers a fixed pay-back rate of 180 forints to the Swiss franc and 250 to the euro.
A total of 725 billion forints (EUR 2.4bn) in loans is expected to be paid back by the end of the year, resulting in a loss of an estimated 175 billion forints for lenders, daily Vilaggazdasag said earlier.
