The banking association does not support the freezing of mortgage rates
The Hungarian Banking Association said on Thursday that it did not support a temporary freeze on mortgage interest rates by the government, according to a report by the state news wire MTI.
“The Banking Association cannot support the temporary freeze of interest rates, to the detriment of the Hungarian banking sector, for customers who have decided to take out riskier variable rate loans despite several warnings to the contrary,” said the professional body.
Prime Minister Viktor Orbán announced on Wednesday that the government has decided to freeze interest rates on mortgages at end-October levels until the end of June 2022.
The association said it had “learned with surprise” of this measure on Wednesday.
He noted that Hungarian lenders, in cooperation with the National Bank of Hungary (MNB), have proposed in recent years to transform customers’ variable-rate loans into fixed-rate loans, drawing attention to the benefits of low-cost loans. fixed rate in public forums and among their clients.
The association underlined the “contribution of the banking sector to the defense against the pandemic” in the form of the payment of a sector tax and the participation in a repayment moratorium which extended over a period longer than any other in Europe.
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