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Foreign Currency Credit for Hungary: monetary black hole for Austrian banks?

Fabian ChristNovember 2, 2011

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.

https://p.dw.com/p/RuMD
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.