Hungary scraps foreign currency loans

Starting today, people in Hungary will no longer be able to take out foreign currency loans, meaning that all problems related to them will vanish from the Hungarian financial system. This was stated by National Economy Minister Mihalj Varga at a press conference in Budapest, the web portal Vajdasag.ma reports.

- As of February 1st, foreign currency loans will be converted into loans denominated in HUF, which will mark the enforcement of Law on Fair Banking System - said Varga.

He said that "by converting foreign currency loans into loans denominated in forints, the Government has protected the population, local self-governments and the national budget from debts totaling 1,000 billion forints".