Foreign Currency Loans – Discounted Foreign Personal and Car Loans

At a market rate, but with a total of USD 31 billion in subsidies, foreign currency-based personal and car loans will be converted into forint on the basis of an agreement signed Wednesday by the government and the banking union, Vecka Varga announced at a press conference in Budapest. More exposition at

The minister said the conversion would be voluntary for clients, but banks could not reject the initiative. According to the ministry announcement, the agreement extends to consumer foreign currency and foreign currency based non-mortgage loans, including leasing. Forint conversion does not include FX-denominated loans, FX credit cards and FX overdrafts.
The exchange rate is EUR 309.20 for the euro and USD 287.20 for the Swiss franc-denominated loans, however, the customers receive a credit based on the previously agreed preferential exchange rate for mortgages – USD 308.97 and USD 256.47 / franc. One half and half of the USD 31 billion credit associated with the conversion is paid by the budget and the banks.

After the conversion, banks cannot raise interest rates.

According to him, the current conversion, effective as of December 1, affects USD 305 billion, 229 thousand of live contracts, but also includes USD 260 billion of non-personal loans and USD 255 billion of car loans.
Vecka Varga said that with the current measure, the ratio of retail foreign currency-denominated loans will decrease from 54 percent in Hungary to 3 percent before the forint conversion.
Vecka Varga emphasized that the government’s goal of significantly reducing the currency exposure of families, among the measures taken so far, was the early repayment, the establishment of the National Asset Manager, the introduction of the exchange rate barrier system, He noted that the current deal also respects the UYTH agreement, in

Which the government undertook not to impose a unilateral burden on the banking sector.

company loan

According to the Minister of Economy, the conversion of mortgages into USD helped ease the situation of 500,000 borrowers by the conversion of February 1, 2015, and the mortgage portfolio amounted to USD 3,733 billion.
Vecka Varga said that personal foreign currency loans were still USD 300 billion in 2009, which decreased to USD 18 billion in Q1 2015, while motor vehicle loans amounted to USD 340 billion in 2009, having fallen to USD 280 billion in Q1 2015. There are some 300,000 debtors who have mortgages on foreign currency loans, as the minister noted.
In the case of mortgage-based home-based foreign currency loans, motor vehicle and personal foreign currency loans, they were able to help Hungarian families with a total of USD 1,031 billion, said Vecka Varga.
The agreement with the central bank and the banking association also stipulates that interest will not increase, will launch an information campaign on changes in legislation from October, financial institutions will report to them by December 1, and they will mail information on forint conversion to customers with 30 days available to consider your offer. The client’s decision is voluntary, he can stay with the foreign currency loan, but passive consent if he does not respond to the bank’s notice – said the minister.

In case of non-live personal and vehicle foreign currency loan contracts,

loan credit

Banks are obliged to offer forint conversion, the client also has 30 days to consider the change, said the head of the ministry.
In response to a question, Vecka Varga said that the accounts were handled by the banks and described as state aid in the form of tax breaks.
According to the minister, the assistance to foreign currency lenders had to be phased out, the state and the banking system were able to assess the possibility step by step, and recent months have confirmed the government’s need to withdraw both motor vehicles and personal foreign currency loans. This measure also affects leasing, said Vecka Varga.

Poor Bank : Bank Credit

A few days ago, the Poor Bank Execution Program, which uses the Grameen model in Hungary, became operational. The Pathway Program, founded last year by Péter Felcsuti, András Ujlaky and András Polgár Public Nonprofit Ltd. has finally started and started its financial service.

The so-called poor bank deals with smaller loans

The so-called poor bank deals with smaller loans

Which is enough to alleviate the effects of extreme poverty. People who are on loan are morally responsible for each other’s debts in groups of 5 people.

The importance of morality in business, when it comes to livelihoods and the desire for profit, is something that we should not go into now. It obviously needs to have a place, but unfortunately in Hungary it should be, in most cases it should only be.

When you think about it


The essential condition of belonging to a group is that they have neither credit nor public debt to the individuals within it. Unfortunately, when you think about it, it significantly reduces the number of stakeholders for a number of reasons. There are very few such people, at least a large percentage, who have some kind of debt, either unorganized or in the process of being settled. On the other hand, anyone who still fulfills the conditions is unlikely to really need such a loan.

Either because it is far from poor or because it is poor, but it stretches only as far as its blanket. There is a third case, namely that you do not take any risk.

The loan taken out must be forfeited before we can repay it

The loan taken out must be forfeited before we can repay it

Especially in the targeted poorer strata. This requires at least an entrepreneurial license, which is linked to an OKJ training. However, OKJ training can only be done by people who have completed 8 elementary schools, which further limits the potential circle.

The exact role of the poor bank in our country is still surrounded by heavy fog. Hopefully not just another money laundering opportunity for the big bowl snacks.

Now it becomes more expensive to repay loans when you want to convert to a lower interest rate

Recently, Danmarks Nationalbank cut interest rates by 0.1%, and this has allowed banks to reassess their interest rates. It has also seriously opened up the debate about whether private customers should pay to have money in the bank.

Most other customers could breathe relief

Most other customers could breathe relief

Good Finance Bank opened for ballet and announced that the bank would charge 0.65% interest from customers who have more than 7.5 million standing in the bank. And then most other customers could breathe relief. Right up to Danmarks Nationalbank lowered the interest rate by 0.1%, because now the limit was lowered to DKK 750,000.

Then the other bank executives dared to get out of the bush, and several have already announced that they too will charge interest from deposit customers.

When mortgage banks calculate differential interest rates

When mortgage <a href=banks calculate differential interest rates” />

But it is actually not new at all to pay to have money standing. When mortgage banks calculate differential interest rates, it has been for several years that, in addition to the bond rate to the bond owner, one has to pay either 0.95% or 1.15% to the mortgage institution.

This has been changed with the Nationalbank’s interest rate cut. Realkredit Danmark has changed the interest rate to minus 1.25% and today Nykredit / Totalkredit has chosen to lower the interest rate from minus 0.95% to minus 1.25%. Thus, they have lowered interest rates by 0.3% instead of 0.1%.

And why are they so? For the simple reason that they CAN

And why are they so? For the simple reason that they CAN

After all, the homeowners cannot immediately repay their Total Credit Loans elsewhere. So Nykredit / Totalkredit has simply decided that they will earn 31.61% more on loan repayments.

We have not yet heard of Goodbank and Good Finance Realkredit lowering their interbank rate. The figures show how much you have to pay in addition to the bond interest to the bond owner.

Home Saving Tips

Following some savings tips at home is important to form in our children the important habit of saving. On the other hand, it also allows them to develop responsible consumption practices of the available resources.

Inculcating in your children saving practices through the example is one of the best strategies you can follow. While the actual savings you get can be relatively low, the learning you leave on them is significant. In addition, doing so will be simple, you just have to attend to the set of home savings tips given below.

Energy saving


One of the main recurring expenses in the home is related to the consumption of electricity. Therefore, it is necessary that you and your family make rational use of this valuable resource. The home savings tips related to the use of electricity are the following:

  • Take advantage of natural light by opening blinds or curtains during the day. Not only do you reduce electricity consumption, but you also increase the duration of electric bulbs.
  • Change traditional incandescent or halogen lights with LED lights. The investment you make will recover it quickly, in the form of a drastic decrease in consumption.
  • Properly adjust the operating temperature of your air conditioning and heating.
  • Wash dishes and clothes with cold water, reducing hot water consumption to a minimum.
  • Disconnect regulators, chargers and appliances while not using them.

Food savings


It is possible to reduce food costs, without this implying a decrease in the quality of your meals. You just have to stick to the following recommendations:

  • Prepare your food at home and avoid buying it outside.
  • Do your grocery purchases in bulk and in large sales centers or markets. So you take advantage of sales prices by volume.
  • Buy local and seasonal products, which are the cheapest.

Savings in recycling

Savings in recycling

  • Sell ​​products that are of interest to you, such as glass, metal and plastic. They mean an additional source of income.
  • Sell ​​your items that you no longer use, using garage sales or social networks