Hungary’s government has made waves by the punitive measures it’s planned against banks who sold consumers foreign exchange loans and then hiked up monthl payments as the national currency plummeted in value. But the National Bank is now set to introduce debt cap regulations that will limit the amount of leverage consumers are able to assume. Beginning in January, consumers will not be allowed to agree to payment plans that exceed 50 percent of their salary and new regulations will be enacted on the acceptable LTV ratio on secured lending. Finally, only those with verifiable income will have access to credit, a standard measure directed as much against the grey economy as it is at protecting consumers and the banks that lend to them.
