Ádám Balog told a conference that the bank would take a role after lawmakers have “finally sewn up” laws related to settling the rates and exchange-rate margin of disputed contracts for forex loans.

Further, when a decision is made by parliament to convert forex loans into forints, the bank will be prepared to step in at that point, too. While this would mean securing a larger amount, the central bank will be to do this safely, he added. This is expected in spring next year.

The government has not yet revealed the exchange rate of conversion into forints.

Commercial lenders have forex loans booked on their balance sheets, and a conversion to forints on the market would involve a risk to the Hungarian currency unless the central bank were to intervene using forex from its reserves.

Source www.hungarymatters.hu

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