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FHB: FX-loan law may cost 19.5 bln forints

Telco

Compensating foreign-currency borrowers could cost FHB Mortgage Bank up to HUF 19.5bn at group level, the bank announced late Friday.

Recently approved legislation says banks must compensate borrowers for exchange rate fluctuations applied on their loans. FHB expects exchange refund costs to exceed HUF 4.5 bln and says it has already set aside provisions for the amount in Q2.

Refunds for imposing unilateral changes to contracts are estimated to cost the bank HUF 12-15 bln. However such refunds will depend on the manner of settlement and on the interpretation of the statute of limitation, the bank added.  

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