Hungary plans to extend the scope of a bill originally aimed at aiding borrowers holding $15 billion in household foreign-currency mortgages, following a top court ruling that said many of these loans had unfair terms.
Hungary is planning to tap international bond markets again this year as the U.S. Federal Reserve’s decision to maintain monetary stimulus helps boost demand for debt, Economy Minister Mihaly Varga said.
Hungary’s government, which faces elections in a year, wants to raise taxes including on financial transactions and phone calls and wants banks to pay into the budget 7 percent of municipal loans the state assumed.
The International Monetary Fund “needs to change its position” on Hungary’s budget gap, which may be twice the target approved by the lender for this year, said Mihaly Varga , an economy official in the new government.
Hungary’s top court will rule tomorrow on the fairness of banks’ exchange-rate margins for foreign-currency mortgages that may be used as the basis of a judgment affecting about $15 billion of the loans.