Hungarian government and banking association continue talks on ending mortgage interest-rate freeze

The Hungarian finance ministry reported that talks with representatives of the Magyar Bankszövetség regarding the withdrawal of the mortgage reference interest-rate stop are still in progress, and no consensus has been achieved. The freeze, initially set for six months in January 2022 and later extended indefinitely, is slated to remain in place until at least the end of September if the parliament approves the government's proposal.

The ministry highlighted the need to protect borrowers who would face a significant increase in monthly repayments and whose income-to-repayment ratios exceed a critical threshold, as well as those who have become pensioners since the policy's introduction. The Magyar Nemzeti Bank warned that the phase-out could impact a sizable portion of its mortgage portfolio. Finance Minister Kármán András and parliamentary state secretary Boda Nikoletta both noted that further consultations aim to craft a solution acceptable to both sides.