According to the Minister for National Economy, the proposal of the Hungarian Banking Association may provide a starting point at negotiations over the relief scheme for foreign currency debt holders. Mihály Varga disclosed details on public service TV channel M1's Híradó (News).

The Banking Association has worked out two proposals for the assistance of foreign currency debt holders, which are a combination of forint conversion, interest rate subsidy and exchange rate barrier schemes – the participants of the talks revealed after Tuesday’s meeting between the Government and the Banking Association.

In the opinion of Association President Mihály Patai, the recommendations will result in a significant cut in the instalments payable by debtors and the lion’s share of the ensuing financial burden, totalling several hundreds of billions of forints, would be borne by the banks for years.

As Minister for National economy Mihály Varga said on M1 News, the Association’s proposal may serve as basis for negotiations, however, the Association has obviously been keen to protect the interests of banks.

The Minister stressed that the final solution may only be one which facilitates the sharing of burdens, “in a more or less proportionate way”.

(Ministry for National Economy)