OTP Romania clients opt into Swiss franc conversion scheme
More than 7,000, or 72%, of OTP Bank Romania clients holding FX loans denominated in Swiss francs opted into the bankʼs Swiss franc conversion scheme, the bank said yesterday, according to Hungarian news agency MTI.
At the end of 2015, OTP Bank Romania offered a partial cancellation of debt and lower interest rates to more than 10,000 of its clients if they converted their Swiss franc loans to Romanian lei or euros.
The bank said clients on average received a discount of 21.2%. OTP Bank Romania set aside around RON 425 million (€95 mln) of provisions for the conversion scheme.
OTP Bank Romaniaʼs Swiss franc portfolio was worth around CHF 500 mln before the start of the conversion scheme.
The Romanian unit of OTP has a 2% market share in the country and serves 426,000 clients.
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.