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Austrian banks are suffering as a result of their exposure to Hungary. They provided mortgages to Hungarians in Swiss francs. As the franc soared against the forint, repayment costs became unmanageable for many borrowers.The Hungarian parliament has passed a law allowing mortgage-holders to repay their loans at favorable exchange rates. The banks are furious, the new law threatens to drive some institutions into ruin. Report by Karl Harenbrock.
Austrian banks are suffering as a result of their exposure to Hungary. They provided mortgages to Hungarians in Swiss francs. As the franc soared against the forint, repayment costs became unmanageable for many borrowers.The Hungarian parliament has passed a law allowing mortgage-holders to repay their loans at favorable exchange rates. The banks are furious, the new law threatens to drive some institutions into ruin. Report by Karl Harenbrock.
