BUDAPEST, July 22 (Reuters) - Hungary’s banks will have to convert foreign currency- denominated loans into forints most probably at the end of the financial year on Dec. 31-Jan. 1, the Hungarian economy minister told private channel HirTV late on Monday.
Hungary’s government wants to get rid of the problem of mostly Swiss franc mortgages that have been burdening households. Varga said the legislation on the conversion should be passed in parliament in the autumn.
“I’d like to make it clear that we must put an end to this issue this year,” Varga said, adding that it was too early to talk about the exchange rate to be used for the conversion.
“We will be able to talk about the conversion in more concrete details around October-November.”
Depending on the exchange rate, the conversion of the loans could bring losses for banks operating in Hungary.
Reporting by Krisztina Than; Editing by Kim Coghill