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His mortgage is also partly financed with foreign currency loans.
The retail banks will also convert private firms' foreign currency loans to forints.
In Hungary, the lure of foreign currency loans back in 2005 was clear.
Foreign currency loans can become ruinously expensive for borrowers when local currencies plunge in value, as happened in 2009.
During its boom, more than 1.7 million families took out foreign currency loans to finance their mortgages.
And while its government has borrowed responsibly, its banks have not, having taken billions of dollars in foreign currency loans.
Similar(35)
Alarm is growing, and Hungary's financial market supervisory authority warned Thursday that large numbers of foreign currency loan holders would be late with repayments.
These responsibilities helped it deal with the 2008 crisis: in short order it defended the currency, loaned money to cash-strapped banks, gave forbearance on troubled loans, soothed the bond market and eased banks' capital requirements.
IFC, for example, broke new ground in 2006 with its first local currency loan to Fundacion WWB Colombia in Cali, Colombia.
According to the Bank's president, Bold Magvan, banking sector average domestic currency loan rates in Mongolia have decreased from 35% in 2000 to 20% in 2007.
Opening the Hungarian border with Austria was essential to this effort; West Germany had secretly offered a much-needed hard currency loan of DM 500 million ($250 million) in return for allowing citizens of the GDR to freely emigrate.
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