Hungary cbank proposes reducing fx loan principal payments
BUDAPEST Aug 26 (Reuters) - Hungary's new programme to help foreign currency mortgage holders should include forgiving a part of principal payments on existing loans, the central bank said in a study published on Monday.
According to the study prepared by two close allies of central bank Governor Gyorgy Matolcsy, the new programme could be a modified version of an existing scheme which allows repayments at a preferential exchange rate of 180 forints per Swiss franc. The difference from the market exchange rate is paid by borrowers after a five-year grace period.
The bank's vice governor Adam Balog and managing director Marton Nagy said the grace period could be extended.
The scheme would cost 30 billion to 40 billion forints ($180.02 million) annually, they added. They did not say who should bear the costs of the scheme. ($1 = 222.2031 Hungarian forints) (Reporting by Sandor Peto; Editing by Susan Fenton)
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