Foreign currency loans – Banks fix car loan exchange rates on Monday

On Monday, foreign currency car loans will be fixed, as banks will ask the National Bank for the amount of currency they will use to convert, and the amounts will be fixed at the rate of 287.2 forints. Clients no longer feel that the Dollar was trading above the USD 292 mark on Monday morning, said Martin Nagy, managing director of the central bank on Monday morning’s current channel M1.

The National Bank of Laban raised the issue of car loans in the spring,

loan credit

Car loans taken out in foreign currency amount to one billion euros compared to mortgages worth $ 9 billion, but there are more than 200,000 contracts, and most debtors have mortgages.
In mid-December, customers will receive a $ 31 billion rebate from the government and banks, and loans will be converted at a rate of USD 256.6. In an agreement between the banking union and the government, the banks took on half of the subsidy amount, essentially half of the $ 256.6 to $ 287.2 exchange rate, said the managing director. The 15.5 billion forints in the banking sector is insignificant, especially considering that it does not charge financial institutions in one year but two years, he added.

Which poses a risk to financial stability because of the high volume of contracts, rather than its volume. 

financial loan

Albert Naan, referring to the central bank’s further oversight activities, emphasized that the text of the law will authorize the MNB to verify the proper provision of information to debtors. On December 15, banks will send the same letter to mortgage lenders describing the currency of the debt, the amount, the new interest rate, and the new installment. The MNB will verify that consumers receive the appropriate information.

Living with your loan everyday

Speaking about volunteering, he emphasized that the customer decides if he wants to convert his car loan into forints, it will be converted into forints. Albert Naan estimated that the rate of those who remain in foreign currency loans would be less than 5 percent, and recalled that this rate was less than 1 percent for home loans (MTI).