Foreign Currency Loans – Not Enough, Further Solutions Needed
Mihály Varga is confident that there will be initiatives to help foreign currency-denominated customers this year, and the Minister of National Economy said Wednesday in Kossuth Radio’s 180 Minutes that he is working on further proposals in the next six months. He stated: There is no one solution that is good for all foreign currency lenders, but you should strive to reach as many customers as possible.
The withdrawal of foreign currency loans
When asked about the timing of the withdrawal of foreign currency loans as a financial facility, the minister said he was confident that 2014 would be the year when several housing loans in Hungary would not be disbursed.
Mihály Varga recalled that on Tuesday the Parliament adopted a bill to broaden the exchange rate barrier, which includes a six-month moratorium on evictions until April.
We have to use the next six months to develop further solutions
When asked when a bailout package for a comprehensive settlement was expected, he said that the number of 780,000 FX-denominated customers has now dropped to 520,000, with two-thirds of the creditors already helped with measures introduced so far, early repayment, exchange rate h creating.
He added that they could never find a solution that would be good for all foreign currency lenders, but they had to strive to reach as many customers as possible.
With Tuesday’s decision to widen the exchange rate barrier, it will also allow customers who have not been able to do so to benefit from discounts and subsidies, he said. At the same time, the Minister of National Economy considers that work should be continued.
He also talked about the launch of a consultation forum to clarify the legal framework for foreign currency loans, as a number of conflicting court decisions have been made.
Strive to find a solution that could be accepted
He stressed that they would strive to find a solution that could be accepted by the vast majority of clients, either at the suggestion of the banking association or together with the practitioners.
Mihály Varga stated that the government is waiting for the Curia to take a unity decision that will allow the parliament and the legislature to take meaningful action.
“The professional background is available for this, we could make economic decisions very quickly, but without a legal basis we would be in a very dangerous area,” the ministry leader said. When asked about the timing of the unity decision, he answered that independent judiciaries make their decisions independently of any other institution.
The Minister of National Economy is hopeful that the courts will also see contradictory judgments on foreign currency loan contracts in the long run. As an example, he cited conflicting rulings by the Pécs and Debrecen judgments (MTI).