National Economy Minister György Matolcsy submitted to Parliament a raft of legislation that aims to help Hungarians with foreign currency-denominated mortgage loans.
The bill fixes the exchange rates on repayments for borrowers that avail of the program for a period of 36 months but no longer than the end of 2014.
The rate for Swiss franc-denominated loans ─ once the most popular retail lending product in Hungary ─ is set at HUF 180 to the franc. The rate for euro-denominated loans is set at HUF 250 to the euro, and the rate for yen-based loans is set at HUF 200 to 100 yen under the bill.
The balance resulting from the difference between the fixed rate and the market exchange rate will be put on a special forint account. The interest rate on the account is to be pegged to the three-month BUBOR.