Patai: November deadline “impossible,” UniCredit scaling down

Sights

UniCredit Hungary CEO/Hungarian Banking Association (MBSz) president Mihály Patai stated yesterday that while the government has a plan to “change the status quo of the domestic banking system,” the imposed November 1 deadline for a solution to the problem of outstanding forex-based loans is “impossible to meet.”

In speaking at a Swiss-Hungarian Chamber of Commerce (SwissCham) event, Patai continued on with “Moreover, imagine a situation in which banks come together and work out a solution. Within three days, all the chief executives would be charged with creating a cartel.”

A unilateral solution should not be expected by the banks, said Patai, reckoning that the government “should accept reality: It is impossible to convert CHF 12 billion to forints on such short notice.” Patai’s comment echoed those of Unicredit CEE Division director Gianni Franco Papa, who stated on Wednesday that Hungary-based banks “should not be burdened all at once to help out borrowers who hold mortgages in foreign currency.”

Mused Patai, “I'm really hoping the government will give up the idea of converting CHF 12 billion to 15 billion into forints from one day to another.”

At a press conference later that day, Patai reported that Hungarian banks are in the fourth consecutive year of losses and that the government’s current plans would place “unjustifiable burdens on existing banks while improving the position of others.”

Patai went on to announce that, in response to expected losses in revenue thanks to taxation, UniCredit plans to scale back operations in the country: The current plan calls for consolidating branch banks via the closing of 15 Budapest branches’ operations, trimming staff by “several dozen” and increasing its market share.

Patai stated that tax burdens would not be passed on to corporate clients.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.