Hungary May Extend Foreign Currency Mortgage Repayment Program

Hungary may extend the application deadline for foreign-currency mortgage holders to repay their debt at lower exchange-rates, according to a proposed amendment by Jozsef Balasz, a member of the ruling Fidesz party.

Households with foreign-currency mortgages may have until March 29, 2013 to apply at their banks, according to the amendment posted on parliament’s website today. The current deadline is Dec. 31.

The government and local banks agreed last year to share foreign-currency mortgage losses by allowing debtors to repay their loans at below-market exchange rates for five years. Less than 21 percent of entitled debtors applied by the end of October, according to data from financial market regulator Pszaf. The central bank earlier forecast a participation rate of around 90 percent.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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