The markets' reaction was swift: the forint plunged to more than 300 to the euro.
The forint fell to a record low against the euro last week and government bond yields have soared.
Hungary's total debt has risen to 82% of its output, while its currency, the forint, has fallen to record lows against the euro.
The forint has come under pressure after the country passed a controversial central-bank law Friday, drawing criticism from the European Union and the International Monetary Fund.
The weakness of the forint - combined with the strength of the safe haven franc - has made these mortgages painfully expensive for Hungarians top repay.
After the forint's sudden drop Mondaymorning, the new economy minister, Mihaly Varga, said the government doesn't want a weaker currency and is ready to intervene to strengthen it.
Non-eurozone EU member Hungary saw its currency, the forint, fall by 5.6% against the euro, amid growing fears that the country could be facing a Greek-style debt crisis.
The forint remains stable, even after a recent credit-rating downgrade.
The Hungarian forint was also in focus, sinking to its lowest-ever level as the euro surged to 320 forints after Hungary canceled a bond exchange auction, citing insufficient bids.
As the eurozone debt crisis has unfolded, official figures showed that the Hungarian government's total debt had risen to 82% of its output, as its currency, the forint, has weakened.
The Hungarian forint, which moves in a band either side of a central rate against the euro, is trading within a whisker of its upper limit, even after a cut of three-quarters of a point on February 21st.
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