Government ultimatum unacceptable to banks

The Hungarian Banking Association cannot accept the ultimatum given to financial institutions by the government, because the banks cannot solve the problem of foreign currency mortgages on their own, without a contribution by the state. That is according to the President of the association, Mihály Patai.

As the financial website portfolio.hu reports, he also told journalists that they would like the central bank’s (NBH) Funding for Growth Scheme (FGS) to continue for they consider it a success.

Responding to a question Patai reiterated the association’s standpoint, namely that the costs of a relief program for FX mortgage holders should be borne jointly, adding that the banks had already shouldered a bigger chunk of the related losses than the other two players, the state and the borrowers.

He added that at the end of August, the association tabled two proposals and although they stick to these recommendations a third solution is already in the making and the presidency of the association will meet again next Monday to think this latest version through.