Hungary Loan Plan Mustn’t Threaten Banking System, Kosa Says
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Hungary must help foreign-currency mortgage holders in a way that doesn’t undermine the banking system, Lajos Kosa, vice-president of the ruling Fidesz party said today.
Fidesz lawmakers proposed on Sept. 9 to make lenders bear the cost of early repayment of foreign-currency loans at fixed rates as much as 20 percent below prevailing rates. Hungarian shares fell to the lowest in two years and OTP Bank Nyrt., the country’s largest lender, plunged after the proposal was announced.