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.

Hungary ready for fight with banks on FX loans –PM Orbán

Hungary's government has backup plans at the ready if its controversial new foreign currency mortgage repayment scheme fails an international legal challenge and is ready to fight with banks as long as necessary, the prime minister said. A bill submitted to parliament late on last Friday would allow borrowers to repay their expensive forex loans at a big discount to market exchange rates, forcing all losses of such transactions on banks, who have sharply criticised the plan.
The central bank has said the solution could threaten financial stability.
"We are ready for each domestic and international fight with banks and politicians on their side," Prime Minister Viktor Orbán was quoted as saying by the Blikk daily in an interview published on last Saturday. "We have a solution at the ready that we can pull out of the drawer in case our current decision is banned by the international court and we will continue our struggle against the banks until we prevail," Orbán was quoted as saying.
Under the proposal, subject to parliamentary approval, borrowers would have the option to repay Swiss franc and euro mortgages at 180 forints per franc and 250 per euro in one go.
Banks in Hungary -- already slapped with Europe's highest financial sector tax -- have called the plan "unacceptable" and promised a legal challenge. The bill sets Dec. 30, 2011, as the deadline for borrowers to apply for early repayment of their loans. After an application is submitted, banks would have 60 days to prepare for the termination of the loan contract.
Orbán said borrowers would not face penalties if for some reason they cannot manage to pay back their loans in one go and opt to remain in their existing loan contracts. "Clients can signal to banks (by the end of the year) whether they want to take advantage of this opportunity. If at the end of the day they do not, or cannot, it will have no consequences," Orbán was quoted as saying.
"We have not the least doubt that forint loan products will appear on the market in an instant. The government and the (financial markets regulator) PSZÁF will constantly be on the lookout to ensure that people are not fooled again."
UniCredit unit Bank Austria was shocked by Hungary's plan to make banks swallow losses on the clearing of foreign currency loans at fixed exchange rates well below market rates and may put business plans on hold there, its head of business in eastern Europe told an Austrian newspaper. "This new law will unleash shock waves. We will not scale back our presence in Hungary, but are considering putting our expansion on ice," Gianni Papa told Wirtschaftsblatt in an interview published on Wednesday. While he said the entire plan is not crystal clear yet, "what is clear is that these measures changed the rules of the game and the consequences will be greater than only the financial ones."
"Unfortunately, the situation will be even worse," Orbán responded to one of the questions put forward by the readers of the country’s leading tabloid Blikk. The readers asked why the forint eased by 32% against the Czech koruna during the eight years the Socialist Party (MSZP) was in power and why it depreciated another 12% since Fidesz has taken office about 18 months ago. The questions and the answers were published in Blikk’s last Saturday issue. "Unfortunately, the situation will get even worse. Public debt was previously not so important with regard to exchange rate changes than it is presently. What we are feeling now is the impact of that," the PM replied.
Source: Reuters,

Last Updated on Friday, 30 August 2013 09:11



Written on 21/12/2017, 21:09 by admin
jerusalemJerusalem, the eternal capital of the state of Israel and the Jewish people, finally got the official recognition which was overdue for decades....
Written on 13/09/2017, 20:13 by admin
guest-post-eu-and-orban-two-good-friendsThe decision of the European Court of Justice, according to which Hungary should accomodate more than one thousand refugees is at the same time appaling...
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...
Joomla templates by Joomlashine