ADVERTISEMENT

OTP banking on loss of HUF 147 bln due to FX law

Telco

As a result of new legislation on FX loans, passed by the parliament last Friday, Hungary’s OTP Bank said it is expecting to lose as much as HUF 147 bln. 

The bank said it expects to pay out as much as HUF 27 bln to debtors who incurred losses due to foreign exchange fluctuations – and a further HUF 120 bln in compensation for unilateral contract modifications.

The legislation, approved on Friday, states that the practice of banks charging currency spread was illegitimate, and such charges have to be repaid to debtors. Regarding one-sided contract modifications, the government declared them to be void, unless the banks can prove in court that the modifications were legal.

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

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.