K and H Bank has decided to restart offering euro-based retail loans because of the gradual improvement in the macroeconomic environment, the introduction of stricter legal rules for household lending and the start of sector-wide self-regulation.
Hungary’s general government deficit has narrowed since the start of the crisis, banks adopted a uniform code of conduct at the start of 2009, and a government decree to come into force on March 1 will force banks to place limits — linked to banks’ own assessments — on the size of each retail loan.
K and H Bank will start offering euro-based loans again on February 15.
K and H Bank suspended euro-based retail loans in July 2009. At the time, the bank explained the measure saying it aimed to expand its portfolio of retail products to include forint-based loans that were a real and attractive alternative to foreign currency-based loans.
Just one other bank, MKB Bank, suspended euro-based retail lending, but it, too, has started offering the loans again.
Many more banks suspended Swiss franc-based lending — earlier the most popular type of loan for retail clients — in the autumn of 2008, after the forint weakened sharply, leaving clients who borrowed in foreign currency with bigger installments.
Is it just my imagination or when a bank starts to “self-regulate” we have what is known as an oxymoron.
Unfortunately, the morons that lend will have very little ability to differentiate between a quick profit and a sub-prme loan, and most of the morons that borrow won’t have a clue what their exposure to exchange rate fluctuations will be.
Hungary is a long way from political or economic stability, this is just typical of the inability here to learn from past mistakes.
Why can’t banks just offer good packages in HUF? Probably because to offer such packages would result in lower profit.
Deafening silence? Never mind the oxy just stick with the “moron” for these cavalier cashmongers.
How many times have financial institutions been found wanting in recent times? Doesn’t the current financiial crisis for which they are responsible teach them anything.
Customers will sign their names to anything just to get their hands on the “readies” in cash- strapped Hungary at the moment.
Why dont’t banks just start lending in plastic
counters and then we will all be in the same demented playschool that is commonly known as the Hungarian non-economy.
PS
There is always the government bail-out packages to ensure the dummies that take out these loans don’t get prosecuted by the banks when they fail to pay the money back.
Just extra insurance for the scheming and conniving banks that have got both their hands in all our pockets.
Actually I was so shocked – after what I’ve heard from my neighbours, I can’t believe it …
But of course people are so desperate, they’ll take any risk …