Hungary: Parliament Resolves Bank Act

Politics ♦ Published: November 5, 2013; 23:04 ♦ (Vindobona)

The Hungarian banking sector, which is dominated by Austrian banks, faces new difficulties.

Hungary: Parliament Resolves Bank Act / Picture: ©

In the pre-crisis years, about 1,000,000 Hungarian households took out foreign-exchange-based mortgage loans. About 80% of the loans were nominated in Swiss francs.

In the years after the financial crisis, the Hungarian forint fell dramatically against the euro and the Swiss franc. Within a few months, the Swiss franc was up by 70% against the forint. As a result, borrowers had…