Report: OTP to suspend dollar check payments by June 15
Hungarian OTP Bank will temporarily suspend the exchange of American dollar checks into cash in response to one of its partners quitting the related agreement, and will maintain the suspension until it partners with another American bank on the matter, according to reports published yesterday. The bank has advised holders to use bank transfers in the interim.
The service is expected to be suspended as of June 15, with the suspension being introduced following related regulations, which means that the lender will exchange checks into cash in some cases.
The decision is not intended to be permanent, as the lender is seeking to enter into an accounting agreement with an American bank. As a temporary solution the bank suggests clients use bank transfers instead, according to reports.
Hungarian daily Világgazdaság noted that many banks operating in Hungary have decided of late to suspend the practice due to changing American regulations making such practices unprofitable for many banks in the United States.
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.