President of the National Bank of Hungary Andras Simor estimated it would cost hundreds of billions of forints to convert foreign-currency denominated loans to forint loans, as suggested by the incoming Fidesz government.
Speaking on a late-night television programme on Sunday, Simor said the question was whether the costs of the exchange-rate and interest-rate differences would be covered by the government, banks or borrowers.
Economy Minister-designate Gyorgy Matolcsy said last week that the new government will offer those owing foreign-currency denominated loans the opportunity to convert their loans into forints through a state foreign-currency fund. They are working on details of the scheme, which is already operating in eight countries and “will cost a lot to the banking system”, Matolcsy said.