Hungary Minister Sees No Bulk Conversion Of FX Loans - Agency
2011年9月14日 - 1:10AM
Dow Jones News
Hungary's economy minister Tuesday played down fears that the
government's debt relief plan for people with mortgages taken out
in strong currencies like the Swiss franc will wreak havoc for the
banking industry.
Prime Minister Viktor Orban presented a proposal to parliament
Monday that would allow people to pay off such mortgages at a fixed
exchange rate well below the market rate. They would have to do so
in one lump sum.
Investors immediately voiced fears banks would suffer serious
losses because many homeowners could take advantage of the deal at
depressed prices.
But Economy Minister Gyorgy Matolcsy said the government doesn't
expect banks to be flooded with requests because the plan doesn't
require banks to offer people loans in forints. His comments were
carried by state news agency MTI.
Most people would presumably have to borrow the outstanding
principal on their mortgages.
Before the global economic crisis, many Hungarians took out
mortgages in foreign currencies because the rates were more
attractive. Today, the large majority of Hungarian households have
mortgages in Swiss francs or euros. Their debt burden has increased
because those currencies have strengthened against the forint.
Asked to explain what Orban meant to say in his speech Monday by
the state "standing behind" OTP Bank Nyrt. (OTP.BU) and mortgage
bank FHB Nyrt. (FHB.BU), Matolcsy said "if they're in need of help,
we'll provide it."
Matolcsy also confirmed he had received a letter from Austrian
Finance Minister Maria Fekter protesting the plan and was answering
it.
Several Austrian banks have subsidiaries in Hungary, generally
with large foreign currency retail loan portfolios.
-By Veronika Gulyas, Dow Jones Newswires; +361-267-0623;
veronika.gulyas@dowjones.com