The state asset managing company formed to buy homes from troubled mortgage debtors and lease them back to them can provide remedy in 10,000-25,000 cases and the planned introduction of personal bankruptcy into Hungarian law could help some 25,000 households, he added.

Balog said the conversion of the loans with lower instalments will help tens of thousands of debtors as well, but there will be another 100,000 who are not helped by any of these measures.

Based on an agreement with the EBRD, those who borrowed for car purchases or took consumer credit can not expect to have their debt converted at below-market rates, Népszabadság adds.

Source: Hungary Around the Clock

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