Some thoughts on the repayment methods of Hungarian household forex loans

Dátum
2014-09-30
Folyóirat címe
Folyóirat ISSN
Kötet címe (évfolyam száma)
Kiadó
Absztrakt

Nowadays the volatility of exchange rates and the macroeconomic changes strongly affect the monthly instalments of the debtors. The growth of delayed forex loans - mostly denominated in Swiss Franc and Euro - can include a high risk, which as a part of a vicious circle can ruin Hungary’s economic situation and even the country’s external judgement. Steps were taken to handle the problem of the forex loans but their result is questionable. In this paper different repayment methods are compared in different economic scenarios. More precisely, the third edition of exchange-rate barrier and income based repayment are analysed in an optimistic realistic and pessimistic scenario. This article is aiming to quantify and interpret the difference between each repayment methods regarding different scenarios. Based on the results suggestions are made how to eliminate efficiently currency exposure from the continuously deteriorating portfolio.

Leírás
Kulcsszavak
Jogtulajdonos
University of Debrecen, Faculty of Economics and Business, Hungary
URL
Jelzet
Egyéb azonosító
Forrás
Applied Studies in Agribusiness and Commerce, Vol. 8 No. 2-3 (2014) , 17-23
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