The NBH data show the number of contracts signed to join the scheme between April 2012 and February 2014 came to 170,508. Including contracts signed under an earlier such programme, the number reached 176,220. Under the scheme, borrowers’ repayments are based on the exchange rate cap until maturity or for a period of five years.

The difference between the capped rate and market rates is placed on a technical account for repayment later. The number of participants joining the scheme has fallen in most months since peaking at around 18,000 in June of 2012.

The value of participants’ loans came to 1,412.7 billion forints at the end of February. Stock of the technical accounts came to 16.3billion.

The NBH said earlier that more than half of eligible borrowers have joined the scheme. Cheap, Swiss franc-based loans were once the most popular retail lending product in Hungary, until the weaker forint caused repayments to grow, pushing many households close to default.

Source www.hungarymatters.hu

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