Hungary Franc Fix May Backfire on Economy, Borrowers, CIB Says

Hungary’s growth and currency may suffer and more borrowers could be hurt than helped by adopting a proposal to allow repayment of foreign-currency mortgages below market rates at the banks’ cost, CIB Bank Zrt. said.

Prime Minister Viktor Orban will detail a Cabinet decision on his ruling party’s proposal to parliament at 1 p.m. today in Budapest. OTP Bank Nyrt., Hungary’s largest lender, and Foldhitel es Jelzalogbank Nyrt. were suspended from trading on the city’s stock exchange.