Hungary: Another Bad Surprise for Banks

Politics ♦ Published: November 4, 2013; 19:10 ♦ (Vindobona)

The Hungarian government plans to shift even more burdens to the banking sector. Costs for the banking sector will reach more than € 3.5bn.

Hungary: Another Bad Surprise for Banks / Picture: ©


Hungary´s government plans to re-convert foreign-exchange mortgage loans into forint at favorable conditions for borrowers.

The conversion of foreign exchange loans will prove expensive for banks operating in Hungary. In order to reduce the indebtedness of private households, Hungary imposes a new foreign exchange debt scheme on the banking sector. About 80% of the…