Consultations have begun between the Government and bank representatives on potential options for phasing out foreign currency mortgages.

Earlier today, Minister for National Economy Mihály Varga received President of the Hungarian Banking Association Mihály Patai in his office. At their first meeting, the two parties successfully established the principles for addressing issues relating to foreign currency mortgages.

The two parties presented proposals that are expected to settle the problem posed by 570 thousand foreign currency mortgage contracts. It has been acknowledged that the measures introduced over the past years – such as the exchange rate limit or lump-sum repayment schemes, conversion into forint loans at preferential exchange rates, the establishing of a national asset management institution and debtor assistance services – have resulted in positive changes for several hundreds of thousands of customers, but fell short of providing a comprehensive solution for all. Both parties emphasised that negotiations need to be completed within a reasonable period of time, as unjustified uncertainty may affect not only the financial system but other economic processes too.

At the end of the meeting, the negotiators came to the common conclusion that in order to work out the details of their proposals they will hold regular consultations over the coming weeks.

(Ministry for National Economy)