New retail forex lending restrictions came into effect on March 1

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The loan-to-value limits of the government decree on prudential retail lending restrictions are to come into effect on Monday.

Further restrictions, including payment-to-income limits will not come into effect until June 11.

Under the new rules, forint loans may not exceed 75pc of the value of the property offered as collateral, while the same limit is 60pc for euro loans and 45pc for other forex-denominated loans. For financial leasing, the loan-to-value limit is 80pc, 65pc and 50pc, respectively.

Similar restrictions apply to vehicle purchase loans as well, which now have a maximum maturity of 84 months.

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