Blows on indebted households

Those Hungarians with high debts denominated in foreign currencies will suffer as a result of a weakening forint. Households had a total of Ft 2400 billion mortgage loans outstanding in April, with more than Ft 590 billion borrowed in foreign currencies. Interest rates of credits in Swiss Francs rose from 0.75 per cent per year to 1.5 per cent in six months and those of borrowed in euros went also up to 3.75 per cent from 3.25. Forint has eased more than 7.5 per cent against both currencies since the start of the year. VGO