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NBH RAISES INCOME THRESHOLD FOR UPPER PAYMENT-TO-INCOME RATIO

 

The National Bank of Hungary (NBH) on Friday said it decided to raise the income threshold for the upper, 60% payment-to-income ratio from 500,000 to 600,000 forints (EUR 1,600) from July 1. The measure was taken because of the high inflation environment and nominal wage dynamics, the central bank and market regulator said. A 50% payment-to-income ratio applies to borrowers with incomes under the threshold. The NBH also decided to raise the threshold for smaller loans exempt from the payment-to-income ratio requirement from 300,000 to 450,000 forints.