Hungary to Inform Public Workers on Loans in January, MTI Says

Hungary will unveil details in January on subsidized forint loans for public workers who wish to repay their foreign-currency mortgages at below market rates, state news agency MTI said, citing a government official.

Public-sector workers should apply for the early repayment plan to “escape the trap of foreign-currency loans,” Peter Szijjarto, spokesman for Prime Minister Viktor Orban said, according to MTI.

Orban sent out a letter to public workers last week encouraging them to repay their foreign-currency mortgages under the plan and promised the government would secure subsidized forint loans for those wishing to refinance their mortgages, MTI said.

Borrowers have until Dec. 30 to indicate to their banks that they want to repay their mortgages, MTI said.

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