Ministry Passes Decision on Conversion of Forex Loans into Forint

Budapest (MTI) – Mortgages denominated in a foreign currency will be converted to forint-based loans at the average exchange rate since the supreme court’s relevant decision or at the central bank’s rate on November 7, 2014, the economy ministry said on Sunday.

Of the two rates the bank will apply the one that is better for the borrower, the ministry said in a statement.

According to the statement sent to MTI, the National Bank of Hungary will ensure the full amount of foreign currency required for the conversion.

The government trusts that once all forex loans have been converted, “banks will use all their energy and available resources to finance players of the Hungarian economy and to further promote the country’s economic growth”, the statement added.

Economy Minister Mihaly Varga told MTI that converting forex loans was crucial for further growth. He said that lending was vital for the economy to stay on a growth course, but lenders needed to get rid of the risks around forex loans.