Financial commissioner solves problems with foreign currency borrowers

Spoke on Monday before the Consumer Protection Committee of the National Assembly. He emphasized that in his professional material he had prepared with the assistance of an external expert, he suggested a solution that would not require state funding and would not narrow the circle of participants.
He explained that he would not recommend that foreign currency loans be converted at the current exchange rate because “this would be a sanction of an unfair situation”.

The Commissioner for Financial Rights

The Commissioner for Financial Rights

Stressed that the starting point for his proposal was that there were a number of costs, such as the exchange rate margin, which could not have been accrued on loans denominated in foreign currency but denominated in forint and repaid.
Doubravszky György said: It is not in everyone’s interest that the Hungarian banking system is shaken in any way, but it is in everyone’s interest to find a solution that benefits the state, the creditors and the banking union, even if it appears .
The creation of a new, alternative banking system could help reform the Hungarian banking system, said the Commissioner for Financial Rights.
As regards the tripartite professional discussion on the social tensions arising from the foreign currency exposure of Hungarian households, ie foreign currency lending, the Commissioner stated that he hoped that after the handover took place in the Ministry of National Economy, they would be able to resume negotiations and even resume them.

He recalled that he had initiated a 45-day eviction

He recalled that he had initiated a 45-day eviction

Moratorium during the transitional period, pending agreement. This is not the final solution, but an important gesture to ensure that no one is on the streets during substantive negotiations, György Doubravszky emphasized.
He also said that his office had not yet been able to begin operations, and that he had only signed since last Friday.

He explained his ideas: he is thinking of a modern 21st century consumer protection where lawyers have to learn to “humanize” and not the other way around.
Responding to questions from Gábor Simon (MSZP), the Commissioner for Financial Rights said the government’s willingness to address the issue should be appreciated and he trusts that the Cabinet will support its proposal to resolve foreign currency borrowers’ concerns.
He said he believed that fewer than expected entry into the exchange barrier was because people were so distrustful that even if the proposal were good, they would still be rejected. Any solution that can help people should be supported – said Doubravszky György.
Róbert Zsigó (Fidesz) emphasized that the Consumer Protection Committee has repeatedly dealt with the problem of foreign currency lenders and considers it important in the future for the role of the financial commissioner to ensure that Hungarian families and businesses are not once again exposed to foreign currency lending.

According to the Member

According to the Member

There should be an effort to teach children basic financial literacy in schools, as it is very important that the consumer has enough information.
The financial commissioner has an important role to play in education, ”said Róbert Zsigó.
György Szilágyi (Jobbik) explained that the government’s actions to date have helped one fifth of foreign currency lenders, and even they had to make huge sacrifices to get out of the credit trap.

He believed that the banking association, the Financial Supervision Authority and the government were in different boats, and the government’s word should be decisive, “it was enough to negotiate with the banking association, because they too are responsible for the situation.”
According to the representative, loans should be converted and converted at the exchange rate prevailing at the time of borrowing; and the banks were “already earning a lot of money to make these deals.” György Szilágyi added that there is a need for banks that operate normally and lend normally; Jobbik is not against banks, but against their lending policies (MTI)