The strengthening of the exchange rate of Swiss franc has a great influence on individuals as well as local governments, because many settlements has been using Swiss franc loans as own resources in development tenders. According to the suggestion of the president of the Association of Hungarian Local Governments, the self-governments should get one year’s grace period before they start to redeem their installments.
Individuals demanded credits for the purchase of their cars, flats, etc. They had counted their installments according to their salaries of that time. But the exchange rate of the Swiss franc has become so high that more and more people reports bankruptcy and lose their personal and real estates.
The rise of the exchange rate has effects on the local governments, too. The self-government of Debrecen also has Swiss franc loans, but the installments have to be paid quarterly. The compensation for exchange differences are calculated by 31 December so the possible loss or profit is quantified at the beginning of next year.
The growing amount of installments can result in bankruptcy or significant amounts of money would be drained from the budget of everyday operation.
(MTI, dehir.hu)
