Hungary’s central bank promotes green mortgages

The Central Bank of Hungary (MNB) presented a new program of preferential capital requirements on green housing loans for credit institutions based in Hungary, the MNB said here on Monday.

“The aim of the program is to distribute climate-friendly financial products and improve the energy efficiency of new homes,” MNB Deputy Governor Csaba Kandrács was quoted by the Hungarian news agency MTI as saying.

“A consultation will also be launched to promote the introduction of green mortgage bonds,” he added.

The central bank‘s new Green Capital Requirements Discount Program offers credit institutions preferential capital requirements on loans for the purchase, construction or renovation of energy-efficient homes between Jan. 1, 2020, and Dec. 31, 2023, and customers may also receive preferential interest rates, according to Kandrács.

At the end of the 4-year period, the central bank will evaluate the experience to decide whether or not to continue with the program.