MNB may help banks pay FX compensation

MNB

The National Bank of Hungary (MNB) is getting ready to help banks compensate customers, following the recently approved borrower’s relief legislation, MNB deputy governor Ádám Balog announced on Saturday.

According to a new law adopted on July 4 by the Hungarian parliament, banks have to compensate borrowers who were charged for foreign exchange fluctuations, and who saw their contracts unilaterally modified without any legal ground. Compensation will cost banks an estimated €3 bln, and the central bank is taking the necessary steps to help them meet this demand, the deputy governor said.

Hungary's government has expressed its intention to phase out FX loans, the most popular retail lending products in Hungary in the last decade. The central bank’s international reserves topped €35.5 bln by the end of August, fresh data show.

Serbia Inflation Close to 3-year Low in May Figures

Serbia Inflation Close to 3-year Low in May

Karácsony Calls for Budapest Mayoral Election Repeat Elections

Karácsony Calls for Budapest Mayoral Election Repeat

2 Major Ground Handlers at Budapest Airport Join Forces Transport

2 Major Ground Handlers at Budapest Airport Join Forces

Summer Camp Prices Have Increased 10-15% Tourism

Summer Camp Prices Have Increased 10-15%

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.