Hungary banks should bear most of FX losses on loans-PM Orban
BUDAPEST, Sept 6
BUDAPEST, Sept 6 (Reuters) - Banks should modify foreign currency loan contracts in favour of Hungarian borrowers by November in a way that the banks would bear most of the losses from the exchange rate swings on these loans, Prime Minister Viktor Orban said on Friday.
Orban said it was banks' moral obligation to do this voluntarily, but if they do not modify contracts by November then the government will step in with its own solution for the problem.
"If the government has to resolve this situation ... it will apply a solution that eliminates foreign currency loans," Orban told public radio.
He said the solution should be fair, and those who got indebted in foreign currency cannot be better off than those who took out mortgages in forints.
"We know how this problem should be resolved as of Nov. 1, there have been and still are talks with banks, but we would not like to be the ones who resolve it," Orban added. (Reporting by Krisztina Than/Gergely Szakacs)
- U.S. Mega Millions lottery up to $400 million, 2nd-biggest ever
- Pope Francis named Time's Person of the Year |
- Uruguay becomes first country to legalize marijuana trade
- Thousands of South Africans line up to see Mandela lie in state |
- China bitcoin arbitrage ends as traders work around capital controls