The Ministry of Justice will submit a bill to Parliament on the FX loan conversion. The legislation will make possible to carry out the conversion parallel with the compensation of borrowers in the first half of 2015.

The Ministry of Justice expects to submit a bill on fair banking to Parliament on 11 November and the bill on the conversion of FX loans into forints could follow on 15 November.

The bill on fair banking will specify stricter conditions for retail loans, taking into account consumer protection aspects.

The FX loan conversion bill will apply only to mortgages. The bill will specify; however, that banks must apply the new conditions set by the fair banks legislation to all earlier FX-based retail contracts.

The loan conversion bill is based on the agreement concluded between the Hungarian Government and the Hungarian Banking Association.

(Ministry of Justice)