OTP Bank to defend contracts in court

Deals

OTP Bank and its subsidiaries decided to defend their decision to make unilateral changes to loan contracts in court, the group announced late yesterday. OTP also said they were considering taking the case to the Constitutional Court.

New FX-loan legislation, meant to force banks to compensate borrowers for the impact of fluctuations in the value of the forint, also invalidates unilateral changes to loans – unless the changes are successfully defended in court. In OTP's case the clause on unilateral changes affects almost HUF 90bn of the bank's stock of FX loans and some HUF 20bn-30bn of forint loans, the bank said.

The bank said it set aside HUF 25 bln for the compensation of its clients.

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