A Not Too Original Sin: Hungarian Indebtedness in Foreign Currency
A Not Too Original Sin: Hungarian Indebtedness in Foreign Currency

Summary/Abstract: Every third Hungarian family services a loan denominated in foreign currency, predominantly in Swiss francs (CHF), drawn either to buy a house or a car. The whole stock of foreign exchange (FX) household mortgage loans amounted approximately to CHF 22 billion, that is 18 per cent of Hungarian GDP in the autumn of 2011. Each month a million families wonder how much to pay on debt service, since the forint (HUF) floats against foreign currencies; therefore the actual sum you must pay depends on the exchange rate on a given day of the month. The household sector is not alone in this situation; companies and the Hungarian state itself are also hooked on foreign borrowed funds.

• Details
• Contents