Borrowers' relief refunds could cost Raiffeisen up to €240 mln

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Austria's Raiffeisen Bank International (RBI) on Monday said refunds its Hungarian business must pay under borrowers' relief legislation could cost it up to €240 mln.

RBI noted that a €67 mln charge had been booked already in the second quarter and the remaining balance would be booked in the second half of 2014.

RBI's Hungarian unit told national news agency MTI in July, after the legislation was approved, that the compensation could add up to €120-160 mln.

RBI issued the statement after a bill on settlement of the refunds was submitted to Parliament.

The borrowers' relief legislation stipulates that banks must compensate borrowers for using exchange rate margins when calculating repayments of foreign currency-denominated loans and for making unilateral changes to both FX and forint loan contracts.

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