Raiffeisen: FX-loan law will cost their bank €120-€160 mln
Raiffeisen Bank International (RBI) announced yesterday that the recently approved borrowers’ relief legislation in Hungary would cost Raiffeisen banks in this country from €120-€160 mln.
The legislation will require banks to compensate borrowers for losses incurred on foreign-currency based loans, which became very expensive after the value of the forint dropped.
A National Bank of Hungary deputy governor said earlier that the borrowers' relief legislation could cost the financial system HUF 600bn-900bn.
RBI said its own estimate of losses does not include costs related to the potential future conversion of foreign currency loans to Hungarian forints.
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.