Hungary:
Local governments seek extension on principal repayment of CHF debt
Hungarian local authorities asked the Prime Minister to intermediate a deal with the banks for a one-year delay in principal repayments of Swiss Franc debt worth HUF600bn (cUSD3.2bn). Banks hinted their reservations about the proposal and suggested one-by-one talks. Details are sketchy at this stage but following a transient reprieve for households indebted in Swiss Franc mortgages, today’s development is another stark reminder of the downside risks of borrowing in a safe haven currency and then having to repay when times are rough
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HSBC Global Research