An average foreign currency debtor with an average loan may have a monthly reduction of up to HUF 28,000, or about 40 percent, in a debt relief decision approved by Parliament on Tuesday, according to Good Finance. Further illustration at momentodada.com
The exchange rate cap will be available to everyone
According to the decision, the exchange rate cap will be available to everyone, including those who have a default of more than 90 days, and will include a new element that could lead to the partial cancellation of debt in many cases.
The latter factor can be very helpful for those with payment difficulties, the portal wrote in an article on Wednesday.
Good Finance assumes that if the debtor restores his ability to pay, the partial credit waiver will not be in spite of the banks, so they will offer this option to a significant number of insolvent customers.
Guarantees a certain amount of debt to the borrowers
The State guarantees a certain amount of debt to the borrowers to which the banks partially waive their debt. The debt is to be discharged so that the debt is less than 95 per cent of the value of the underlying property.
Good Finance recalls that due to the weakening of the forint, the value of debt from previously taken foreign currency loans may currently exceed both the amount borrowed and the value of the underlying real estate.
According to their calculations
An average foreign currency borrower who took out a Swiss franc-denominated loan of HUF 6 million in 2007 has a current debt of HUF 7.6 million and the monthly installment of the original HUF 45 thousand has now increased to HUF 72 thousand. The latter may fall to HUF 44,000 – or HUF 28,000 – due to the possibility of partial debt forgiveness and payment at the exchange rate of HUF 180.