Foreign currency loans – to postpone final vote on forint conversion proposal

The GFI has proposed that the House postpone its final vote on Tuesday’s bill on the conversion of foreign currency loans into forints, which they believe have not yet been clarified.

Lacked a conversion calculator

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Arnold Sniffer, co-chairman of the opposition party, raised a question at Monday’s press conference on whether debtors’ installments would actually be reduced by 25 percent; he does not know what the government is basing the number on. The politician also lacked a conversion calculator on the Good Finance bank’s website to help stakeholders calculate the impact of the conversion.

Buying it at a much lower price

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He also stated that the Good Finance Bank of Hungary “steals” debtors by about HUF 100 billion by providing the banks with foreign currency for the transaction at a market price, while buying it at a much lower price.

The government argued that the ruling of the Muria and the regulations of the Good Finance Bank and the Union do not allow the Good Finance bank to conduct foreign exchange transactions at a fictitious exchange rate, said the decision of the Muria does not bind the legislator, but if the government would also justify postponing the final vote.

The politician also strangely referred to EU standards as being “not typical of a freedom fighter government” for the past four years, he said.

New loan charges are linked to a reference rate

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At the briefing, Elizabeth Shuck, MP for the GFI, considered the forint conversion to be belated, unfair and uncertain as to its outcome. He added that since the new loan charges are linked to a reference rate, there is no guarantee of a low level of interest rates. In his view, the government is not sure whether the forint converts can do well, as is indicated by the fact that they have widened the circle, which will not be obliged to convert.

Meanwhile, the House has adopted its weekly agenda, which will include Tuesday’s final vote.

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