Hungarian consumer loans and mortgages denominated in Swiss franks stopped growing in March, according to central-bank data cited by business daily Vilaggazdasag on Monday.
The figures also indicate that many borrowers have converted their increasingly expensive foreign currency loans into forint-based loans.
Consumers were attracted to cheap foreign currency loans when the gap between the high interest rates in Hungary and low rates abroad made repayments affordable. When the financial crisis struck, however, the forint weakened to levels which made the foreign currency loans too expensive for many.
Some banks are allowing clients to convert their loans into forints free of charge, said Nepszava daily. OTP and K+H banks are allowing free conversions while Erste bank offers eased conditions.
Hungary’s parliament is expected to discuss a bill on Monday on a scheme to convert the status of holders of defaulted mortgages to tenants, in order to prevent evicitions, the paper said. Prime Minister Gordon Bajnai has also worked out a draft bill on further measures requiring banks to ease conditions on loan conversions and extending lending periods for troubled debtors.