Gov’t to extend eviction moratorium, banks opposed
Wednesday, February 20, 2013, 11:35 AM CET
The Hungarian Banking Association said it does not support an extension of a moratorium on evictions in a statement on Tuesday. The association called the moratorium a “faulty device” and said that the government had failed to consult with banks on the matter as promised in an earlier pact. It added that the measure would reduce economic predictability.
Government commissioner for financial rights György Doubravszky last week proposed extending the moratorium on evictions by 45 days from March 1. He urged talks between the government, the Hungarian Banking Association and civil groups to address concerns over troubled borrowers with FX loans, and suggested further extensions of the moratorium could be necessary depending on the outcome of the talks.
The association said it is committed to solving the problems of troubled FX borrowers and noted it actively participated in an exchange rate limit scheme, the conversion of non-performing FX home loans into forint ones, and the establishment of a state asset manager to buy homes up for foreclosure. Banks also have their own assistance programs that, together with the government-sponsored programs, have been applied to the cases of several hundred thousand borrowers, it added.