Some Thoughts on the Repayment Methods of Hungarian Household Forex Loans

Barbara Sepsi and Veronika Fenyves

APSTRACT: Applied Studies in Agribusiness and Commerce, 2014, vol. 08, issue 2-3, 6

Abstract: 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.

Keywords: Agricultural Finance; Financial Economics; Public Economics (search for similar items in EconPapers)
Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/202875/files/2-Sepsi.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:apstra:202875

DOI: 10.22004/ag.econ.202875

Access Statistics for this article

More articles in APSTRACT: Applied Studies in Agribusiness and Commerce from AGRIMBA
Bibliographic data for series maintained by AgEcon Search ().