Wednesday, June 1, 2011

Hungary Fixes Exchange Rates for Foreign Currency Mortgages

Home owners who financed their property with foreign-currency mortgages were hit hard over the past eight years because “nobody warned them,” not even the people whose job it was, about the risks of foreign currency fluctuations, according to Wall Street Journal.

Hungary will protect them from exchange-rate fluctuations by fixing the Swiss franc-forint, the euro-forint and the Japanese yen-forint exchange rates at 180, 250, and 2.00 forints, respectively, for existing mortgages until the end of 2014. The switch to these rates will be voluntary and borrowers will have to request it from their banks.

See the full story in Wall Street Journal here.

Geir Solem
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