Hungarian Mortgage Rescue Programs 2009-2016

OTKA (Hungarian Scientific Research Fund)

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Date Published 2016
Primary Author Csizmady, A.
Other Authors Hegedüs, J.
Theme Housing Finance Subsidies, Real Estate Cycles and Bubbles, Global Financial Crisis
Country Hungary


The study demonstrates the mortgage-lending increasing between 2000 and 2008, the reasons for the fast establishment of the FX portfolio, the consequences of the crisis in 2008, and the program aiming to handle this crisis. The first part of the study summarizes the facts of the development of the mortgage market, while in the second part the different actors of the crisis and their interests are presented, and then the different programs are analyzed. The focus of the paper is the nature of the mortgage rescue programs, how the hardship of the adjustment is managed by the government and how the cost of the programs is shared among the households, government (tax payers) and banks.

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