Hungarian National Bank to Use Foreign Currency Reserves

Politics ♦ Published: September 15, 2013; 21:11 ♦ (Vindobona)

In order to support Hungarian homeowners, MNB (Hungarian National Bank) sells a part of its forex-reserves.

Hungarian National Bank to Use Foreign Currency Reserves / Picture: © Vindobona.org

The centre-right government will force banks to convert loans for a second time. Already in September 2011, the Hungarian government resolved that Hungarian loan takers may repay foreign currency loans at favorable conditions. Losses for banks amounted to 25% of the nominal value.

The government first of all intends to eliminate foreign currency denominated mortgages for home…