All You Need to Know about the Forintization of Foreign Currency Loans
November 27th, 2014

The schedule for the forintization of foreign-currency loans was published last week. 

The foreign-currency and the foreign-currency-based property loans get forintized, those got for buying an apartment and the free-to-use ones as well. 

The forintization is not obligatory: the debtors can request that their loans stay unchanged, if they get their regular salaries in foreign currency, and its amount is higher than the monthly repayment; they meet the criteria of the income-driven repayment plan, the interest after the forintization is higher than the original one, and the duration of the loan expires until 31st December 2014


The Interest Rate Stays the Same

 The monthly repayments are not likely to decrease because of the forintization, but the repayment the debtors get from their bank can cause the mentioned effect. The interest rate of the forintized loans is expected to be about the same, but they will not be fix-interest loans, but ones bound to reference interest, thus the interest rate can change in every 3 months.


Foreign-Exchange Risk Gets Eliminated

The settlement has to be made by the 1st February 2015; the debtor will be notified after about the new monthly repayment. After the forintization of the loan the strengthening or weakening of the forint will have no effect on them, since the foreign-exchange risk gets eliminated. The forintization will be realized by standard rules. After the forintization it will be worth to check the market for new loan opportunities, since we may be able to exchange our existing loan to a more favorable one.