ADVERTISEMENT

UniCredit could freeze Hungary expansion because of early repayment scheme - paper

Pharma

Italy's UniCredit group is considering putting on hold plans to expand its network in Hungary because of an early repayment scheme for foreign currency-denominated mortgages that makes bank cover the cost of a discounted exchange rate, Giani Papa, CEE director for UniCredit unit Bank Austria, said in Wednesday's issue of Austrian business daily Wirtschaftsblatt.

Hungary's Parliament on Monday approved legislation allowing early repayment, in full, of foreign currency-denominated mortgages at an exchange rate well under the market rate. Banks are to pay for the cost of the difference between the two rates.

"The new law will produce shock waves," Papa said. "We won't reduce our presence [in Hungary], but we are considering putting our expansion plan on ice," he added.

Papa said UniCredit is adjusting its expansion in other countries of the region to slower growth.

Number of Doctors per 10,000 Inhabitants Reaches 44 Figures

Number of Doctors per 10,000 Inhabitants Reaches 44

Karácsony Declared Winner in Budapest Mayoral Race After Rec... Elections

Karácsony Declared Winner in Budapest Mayoral Race After Rec...

Kecskeméti Konzerv Sold With Legal Support From Wolf Theiss Deals

Kecskeméti Konzerv Sold With Legal Support From Wolf Theiss

White Party at The Duchess Coming This Weekend Drinks

White Party at The Duchess Coming This Weekend

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.