Budapest, November 4 (MTI) – Lawmakers of the ruling Fidesz-KDNP alliance have proposed that banks should be allowed to change interest rates and interest rate margins in retail loan contracts only once every three years, parliamentary group leader Antal Rogan said today.
After a meeting of the parliamentary groups where a draft law on fair banking was discussed, Rogan said banks would have to announce any changes to contracts 90 days in advance. Banks would also have to provide an “objective index”, a formula which they used when changing the interest rate, and this would have to be approved by the central bank, he said. Other fees could only change at a rate not exceeding inflation, he added.
Interest for late payments would also be capped and borrowers would be allowed to cancel their loans, free of charge, every three years, Rogan said.
The new stricter rules would apply to all loan contracts by January 1, 2016 at the latest, he said.
Foreign currency-denominated loans would be phased out from the market and “no forex loan can remain in Hungary after Jan. 1. 2016,” he said, adding that the only exception is if the client, after being offered the conversion, assumes the risks voluntarily.
Rogan said he expected interest rates would drop in general as a result of the introduction of the fair banking law.
Rogan said that a bill to extend the telecoms tax to cover internet traffic would be withdrawn in a proposal to be submitted on Wednesday. He added that lawmakers would vote on next year’s budget bill with this item excluded.
Lawmakers asked the government at Tuesday’s parliamentary group meeting to gradually replace all employment-related state support by opportunities for fostered work, and to examine ways in which childcare benefits could be linked to work.
Photo: MTI – Zsolt Szigetvary