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Erste CEO confident of Hungary mortgages solution

VIENNA, Oct 30 (Reuters) - Austria's Erste Group Bank is confident of coming to an agreement with the Hungarian government on a plan to help foreign-currency mortgage borrowers, its chief executive said.

The government wants to reduce costs for homeowners, whose loans have become more expensive, and has rejected proposals from the Hungarian Banking Association. It is expected to present its own plans early next month.

"We're entering into negotiations. We're quite confident that we're going to find a negotiated reasonable solution for that issue during the next four weeks," Andreas Treichl said on a conference call monitored by Reuters.

Treichl added that he saw no significant loan growth in coming quarters but expected risk costs to continue to decline through early 2014. (Reporting by Georgina Prodhan; Editing by David Holmes)