The Hungarian National Savings Bank (OTP) is launching its new fixed rate program for the government’s foreign currency credit problems. For the next two and a quarter year it is giving a fixed rate of 200 forints for its troubled clients. Hungary’s consumers and cities have gotten into serious financial difficulties because of a reliance in year’s past on cheap loans based in Swiss francs. In particular, mortgage loans that were once far more affordable to the general public have gone up drastically in price. The result has proved to be a major drag on the economy, as families are forced to cut back heavily on other purchases in order to be able to pay off their home loans. Municipalities, however, are finding themselves in serious difficulties as well.
