During the settlement of foreign currency-denominated loans, financial institutions refunded an unfair amount of USD 393 thousand to an eligible customer, said Vilmos Galaman, director of the National Bank of Hungary (MNB) in a central bank backdrop on Tuesday.
The director said that according to the MNB’s summary, the amount unfairly charged was USD 734 billion.
The average monthly installment of Swiss franc-denominated housing loans fell by USD 26,100, or 25 percent, while the average principal debt of such loans fell from USD 8 million to USD 6.5 million, ie USD 1.5 million.
The director of the MNB said that the amounts refunded by financial institutions varied, with an average mortgage loan of 718 thousand and an average of 201 thousand forints of non-mortgage customers.
Vilmos Galaman explained that out of the 1.9 million contracts covered by the settlement, 975.5 thousand were credit agreements that had already been concluded, that is to say, they had been repaid – they had received the amount settled.
More than 50 percent of these contracts concerned car loans.
As a result of the settlement, 66.2 thousand contracts were terminated, ie they were able to repay the outstanding debt from the amount repaid, the central bank director added.
He said that the total amount of outstanding debt decreased by USD 549.5 billion for clients with live contracts, of which USD 474 billion for outstanding capital liabilities. As a result, the average monthly repayment installment of the remaining Swiss franc-denominated housing loans fell by 25 per cent to USD 26,100, but it should be noted that the central bank compared not only the settlement but the first installment after the conversion, explained the central bank director.
The monthly repayment of an average Swiss franc-based car loan has decreased by 27 percent as a result of the settlement, from USD 47,340 to USD 34,640.
He also said that according to the MNB, 76% of live loan agreements had a 0-50% reduction in installments, while 10% of customers had no change in installments. After the settlement, the installment payment increased by 5 percent after the settlement, he added.
Vilmos Galaman explained this by saying that for some of the debtors involved, the loan was accompanied by a grace period, for example, only interest payments were made, as was the case with certain home savings contracts.
But the installments of those who had previously agreed with their bank on a temporary payment facilitation scheme also increased, and they ran out after settlement.
Of course, most of those who paid increasing installments were those who had a significant amount of overdue debt, because in their case the banks re-capitalized the overdue debt at the time of settlement, he said.
In Galaman, Vilmos reported that there were 144,615 complaints from clients regarding clearing, of which 141,350 had already been answered by financial institutions. According to data as of September 30, 13,674 creditors have referred their case to the Financial Arbitration Board, out of the 2391 cases closed by the end of September, the PBT terminated the proceedings and 62 cases were settled between the debtor and the financial institution. In 12 of the transactions, the conciliation body required the financial institution to account correctly, said the MNB’s director.