Rogán: Banks must settle by end of Feb 2015
Banks in Hungary must settle with borrowers by the end of February in the case ofcontracts that the courts have deemed unfair, Fidesz’s group leader said. Repayments on forex loans are expected to drop by 25-30%, the ruling party’s Antal Rogán told a news conference.
As part of the forex loan compensation law, a moratorium on raising rates or fees will be introduced until April 30, 2016, he said. Rogán said the bill would be submitted to parliament on Friday and the vote held on Sept 24.
The 400 lenders affected will have to calculate the compensation for all foreign currency and forint loans taken out by some 1.3 million households. This will involve around 680,000 FX loan contracts and 650,000 forint ones, he added.
The refunds will first be calculated for forex loans, he said, with various deadlines set for the settlement before the end of February. According to a central bank estimate, the compensation will cost banks a combined EUR 3 billion. The central bank will determine the formula to be used by banks for the calculation of refunds, Rogán said.
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