First MNB decree on borrowers' refunds approved
The National Bank of Hungary's Financial Stability Council has approved a central bank decree regulating the basic method for calculating compensation banks must pay under borrowers' relief legislation approved in the summer, the MNB said today.
The decree, to take force early in November, will be followed by three more decrees in the second half of the month, the MNB said.
The borrowers' relief legislation requires lenders to refund borrowers for using exchange rate margins when calculating repayments for foreign currency-denominated loans and for making unilateral changes to both FX and forint loan contracts.
The decree allows lenders to choose one of three separate methods for calculating the compensation which is to be deducted from borrowers' repayments. The MNB noted that all three methods produced the same results, putting borrowers at no disadvantage.
The MNB said it had consulted with the European Central Bank as well as with the Hungarian Banking Association and experts delegated by its members during the drafting of the decree.
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