Hungary aims to convert FX loans into forints -minister

BUDAPEST, June 26 Thu Jun 26, 2014 2:07am EDT

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BUDAPEST, June 26 (Reuters) - Hungary's government plans to get rid of household foreign currency loans by converting them into forints, possibly by the end of the year, in a way that does not undermine the banking system, the economy minister was quoted as saying on Thursday.

"When we think about the future, such solutions are possible that obviously do not jeopardise the operation of the banking system but still scrap foreign currency loans in their current form and make their repayment possible without any problem," Mihaly Varga was quoted as saying by the daily Nepszabadsag in an interview.

When asked whether this meant a conversion of the loans into forints, Varga said: "The goal is to convert them into forints and to create fair contracts. The expectations have not changed, monthly repayments must fall substantially." (Reporting by Gergely Szakacs; Editing by Andrew Heavens)

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