Josef hírek

2011.09.18. 10:06

Govt has a plan B and C if intl court rules against FX repayment scheme

Budapest, September 17 (MTI) - Hungary s government has a "plan B" and a "plan C" if an international court prohibits a plan allowing early repayment of foreign currency-denominated mortgages at a fixed rate that is lower than the market rate, Prime Minister Viktor Orban said in an interview published in Saturday s issue of tabloid Blikk.

Budapest, September 17 (MTI) - Hungary s government has a "plan B" and a "plan C" if an international court prohibits a plan allowing early repayment of foreign currency-denominated mortgages at a fixed rate that is lower than the market rate, Prime Minister Viktor Orban said in an interview published in Saturday s issue of tabloid Blikk.

"If one takes a risky political decision, then there has to be a second and third line of defence, too. We have the solution in the drawer that we can take out if an international court prohibits our latest decision," Orban said.

 

The prime minister announced the early repayment scheme on Monday and Fidesz MP Antal Rogan submitted the bill implementing the plan to Parliament late Friday.

 

Orban said in an interview on Tuesday that he expected the plan to "come under attack" and conceded that the European Court could take a decision years from now saying the plan is illegal. The Hungarian state, not borrowers, will bear the burden of any such decision, he added.

 

Orban told Blikk the government would continue the struggle against the banks "until we win".

 

The prime minister revealed he repaid early his own five million forint Swiss franc-based loan two months earlier.

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