Central Bank of Hungary brings in macro-prudential borrowing caps
New caps will limit payment-to-income levels, especially on FX loans
The Central Bank of Hungary (CBH) is bringing in new caps on household indebtedness, in a macro-prudential bid to bolster financial stability, as well as discouraging the ‘grey economy' by restricting lending only to those with a provable income.
The restrictions on household borrowing in Hungarian forints will be "lax", says the CBH, and so "presumably will not lead to a cut-back on lending" when they come in at the start of next year. Lending in foreign currencies, however, which has caused
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