Household credit crisis
Getting disentangled from the foreign currency debt crisis has been slow and painful process for Hungarian society. The government has taken several steps intended to make life easier for citizens with foreign currency debt issues. Not too many people used the option first offered by the government, i.e. repaying forex loans at a fixed rate. "Final-repayment” was a viable option only for borrowers with accumulated financial assets, while the purchase of repossessed apartments by the National Asset Manager equally provided support for few people only. The measure introduced last, i.e. the forintization of FOREX based mortgage loans lifted a significant burden from the shoulders of many families, while the sums deemed "unfair" and recovered from banks were gratefully received by the debtors. In total, the level of household debt relative to disposable income was reduced.
Home loans
Home loans in foreign currency
Gross debt-to-income ratio of households
Gross debt-to-income ratio of households is defined as loans, liabilities divided by gross disposable income with the latter being adjusted for the net change in pension entitlements.