The official said the government has not yet decided whether to convert forex debts at market exchange rate or below, but it should be taken into consideration that an under-market-rate conversion would present risks to financial stability.

The state secretary expected financial institutions operating in Hungary to have a clearer view of their situation after the settlement of refunds to household borrowers, the debt conversion and the planned establishment of a “bad bank” are over.

Banks cannot yet make up their minds on whether to leave Hungary or stay put, but if a foreign bank decides to leave, “the government will be there to pick up the threads”, he said.

Source www.hungarymatters.hu

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