freelogoOur objective is to provide English speaking readers interested in Hungary with a well balanced view of political activities in Hungary by featuring contents from various printed and online sources together with our own commentaries. We are convinced that Hungary is built on all sorts of different ideas, thoughts and opinions and, despite of the new Media Law, our aim is to provide an alternative and reliable source of information – contrary to the one-sided press of the government – for those who want to hear the voice of a free Hungary.

Orbán: There will be loan conversion and maximized utility charges

Prime Minister Viktor Orbán announced a six-point national protection program in parliament. The government allows those borrowers who have their debts denominated in a foreign currency to pay off their debts at a fixed rate; utility charges such as water and waste water will be at centrally set prices, and also the 35% VAT rate is going to be introduced which apply on luxury goods. The government seeks the approval of the EU to be able to take these measures. In the national protection program the government declares that borrowers who have their debts denominated in a foreign currency can pay off their debts at a fixed rate Hungarian forint in one lump sum in as it was suggested by the Fidesz fraction, said Orbán. Banks are not allowed to charge any fees when the debt is paid off in full. According to Orbán, with this step the government wishes to provide an opportunity to those who can pay off their debt in one lump sum.
According to the prime minister, this really is a risk and loss sharing agreement. According to Orbán the bulk of foreign currency denominated debt was taken in Swiss Francs (CHF) at an exchange rate between 155-160 Hungarian forints (HUF), hence the loss is covered by the borrower up to the 180 HUF/CHF exchange rate (the rate at which the government would allow borrowers to pay off their debt), and the lending bank will have to take the loss beyond that. According to the prime minister, the decision does not threaten the stability of the banking system since „there are mother companies (banks) behind the foreign banks in Hungary and the state is behind OTP and FHB [two of the biggest Hungarian banks active in mortgage lending]. According to Orbán there is no real threat that foreign banks will leave the country since they are already withdrawing large chunks of their deposits from Hungary, and are also continuously decreasing their lending activities here. According to the prime minister, the fixed rate debt payoff structure may well be attacked at various international forums, and if the country was to be dismissed then „we will react with the relevant countermeasures”, said Orbán. He also asked the parties of the governing coalition not to make the conversion of the existing foreign currency denominated loans into Hungarian Forints and the provision of loans in Hungarian forint mandatory.

Last Updated on Friday, 30 August 2013 09:11

Newsletter

Comments

Written on 06/10/2016, 19:58 by admin
guest-post-the-day-after-the-referendumThe much anticipated referendum about the resettlement of migrants in Hungary was declared invalid, however, those who voted overwhelmingly rejected the...
Written on 23/06/2016, 06:31 by admin
disintegration-or-something-else-gyurcsany-s-solutions-to-the-ills-of-western-democracies  Something has gone wrong. Quietly, but ever more noticeably, more and more people in more and more places are in revolt. In the American...
Written on 06/04/2016, 19:20 by admin
how-germany-and-its-leftist-liberal-supporters-killed-solidaritySolidarity. This is the word that is probably is the most used and misused term in European politics. Its original meaning is supposed to mean to show...
Written on 23/03/2016, 20:30 by admin
the-orban-regime-can-only-end-in-failure  Change in the Orbán regime is only possible in the event of its downfall, so ruling Fidesz either becomes successful with its current set of...
Written on 23/03/2016, 20:20 by admin
anger-or-resignation  No matter how hard Mr Orbán is trying to get rid of his old cronies, he just cannot get rid of himself. He is too old for his system. The...
Written on 14/01/2016, 20:51 by admin
europe-s-new-yearThe European continent had a very difficult year in 2015, but that may be dwarfed by 2016. The most heated issue will be, without a doubt, the migration...
Written on 09/12/2015, 14:16 by admin
the-secret-diaries-of-viktor-orban-nov-dec-2015November 14th 2015I awoke to the shocking news about the Paris attacks last night. Words cannot express my feelings of shock.It turns out that one of the...
Written on 12/11/2015, 14:31 by admin
spies-in-the-newsroom   According to a new scheme, the government might place spies in the newsrooms, to have a better view of what is being written. This all...
Written on 29/10/2015, 20:02 by admin
greczy-s-blog-many-for-hungary  Some may want to do so, but DK will not write off its plans to win 2018 elections and to have a desperately needed co-operation with other...
Written on 10/09/2015, 18:07 by admin
ferenc-gyurcsany-and-the-refugees  He does what is not done by any other politician. He accommodates refugees in his home. He gives clothes that his children have outgrown to them,...
Joomla templates by Joomlashine