Foreign Currency Loans -Good Finance Offers Forint Conversion to Forint for Non-Settlements

Good Finance Bank will send approximately 50 types of letter of notification to its clients in the context of its clearing and forint conversion of more than 400,000 affected loan and leasing contracts, said László Harmati, deputy CEO of the bank in a background interview in Budapest on Wednesday.

The ongoing process as an opportunity

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He emphasized that the bank is also looking at the ongoing process as an opportunity, and as part of its growth strategy, it wants to play an active role in reshaping the retail credit market.
The Deputy CEO announced that the bank will also offer its foreign currency mortgage customers the option of converting at a discount rate and converting to HUF interest rates if they are not involved in the settlement, ie those who took foreign currency loans from the bank before May 1, 2004. With this step, Good Finance’s mortgage loans can be fully registered in HUF, said László Harmati.
László Harmati said that the Bank started preparing for settlement and forint conversion, as well as information related to it, already in the autumn of 2014, in order to make the process efficient and smooth for the clients.

By serving the needs of our clients

 We wish to be actively involved in the settlement and forint conversion process, which means additional information, personalized information and suggestions for solutions,” emphasized László Harmati.
He explained that Good Finance Bank has created the forintositas.hu website, the content of which is regularly updated and that the interested clients are kept informed of the process through the website, and in the future the clients of the bank can log in with their own code and the solutions offered to them.

He said that based on the attendance data, forintositas.hu provides useful information and offers not only for Good Finance clients but also for clients of other banks.
László Harmati emphasized that the bank offers foreign currency-denominated mortgage lenders the option to convert forint, which the law would not be entitled to, with the aim of removing the entire exchange rate risk from Good Finance Bank’s mortgage loan portfolio.

The bank will inform its customers about the settlement

The Deputy CEO said that the bank will inform its customers about the settlement in several steps from early March to the end of April. Notifications will be quicker, such as car creditors, who will only be cleared, and forint-denominated foreign currency creditors will be notified later, but by the end of April, they will also be cleared by law.
At Good Finance, 50% to 50% of transactions are live and closed, roughly two thirds of the 400,000 transactions are foreign currency loans and the rest are forint loans.

The bank will settle the settlement and the conversion of HUF less than the previously earmarked HUF 110 billion, but today there is no significant reversal yet.
In all cases, the bank accounts for the outstanding debt and not for arrears in respect of the outstanding balance in its system.
He said that the client has 60 days from the date of receipt of the settlement letter to cancel his credit earlier and another 90 days to redeem this loan with a new loan. (MTI)