The credit build in Hungary in the 2000s was among Europe’s biggest, expanding by a factor of eight. Much of that capital flooded into the housing market in a way that would make American subprime financiers blush, putting people with minimal income or credit histories into homes they could not pretend to afford. Making matters worse, most of the loans were in foreign currencies, so when the inevitable currency swings occurred, even Hungarians who were able to afford their homes under normal circumstances suddenly saw their mortgage payments double.
