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