By the end of February 2013, about 452 thousand people eligible to apply have joined the exchange rate cap scheme. They represent 31 percent of foreign currency mortgage debtors. The stock of forex loans with preferential, fixed exchange rates totalled HUF 1152bn, which corresponds to 37 percent of the total stock of outstanding forex loans at the end of February, the Hungarian Financial Supervisory Authority reported on its website.

Credit institutions and financial enterprises have opened 132 558 special accounts until 28 February 2013, at the request of their customers with foreign currency mortgages. The total number of exchange rate cap contracts already concluded was in excess of 141 thousand. (Several weeks may pass between a contract being signed and an account being opened.)
The total amount of loans on special accounts was more than HUF 5bn at the end of February. Forex debtors participating in the exchange rate cap scheme were exempted from paying interest amounting to a total of HUF 7.443bn.

Via the fixed exchange rate scheme, the monthly loan instalments of forex debtors stabilize at a lower, calculable amount for at least three years, or until the end of June 2017 at the latest (exchange rates are capped at CHF/HUF 180, EUR/HUF 250 and JPY/HUF 2.5). As a consequence, foreign exchange rate fluctuations do not affect loan instalments during the period in which the fixed rate mechanism is in place, and the difference between the spot rate and the fixed rate is deposited on a special forint account.
The state and financial services providers undertake to pay the interest accrued on the special account, which means that the debtor is granted relief for this part of their liabilities. However, for liabilities accumulated on the special account, financial services providers charge interest on the basis of Hungarian interbank rates (in addition, public sector employees receive preferential rates of interest). Mortgage debtors may apply at the financial institution that facilitated the loan to conclude a fixed exchange rate contract until 31 May 2013, as the National Assembly has extended the original deadline of 29 March 2013.

(Ministry for National Economy)