He based his statement on the progress of talks with the government on a reduction in the tax in exchange for more lending by banks.

Speaking to the Leasing Association, Kovács said he expects that a new relief package for foreign-currency mortgage debtors will be announced just before the local elections in the autumn.

The government will probably expand the fixed-rate repayment scheme, Kovács said, placing some extra burden on banks by ordering them to swallow part of the currency exchange losses.

As banks are happy with this scheme, they would accept this solution, he added.

Source: Hungary Around the Clock

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