Croatian retail loan conversion to cost OTP HUF 7.2 bln

Analysis

LaMography/Moni Lazar

OTP Bank on Friday said that conditions on the conversion of Swiss franc-denominated retail loans into euro loans, approved by Croatian lawmakers on Friday, would have a negative impact on the pre-tax profit of its local unit of HRK 178 mln (HUF 7.2 bln), according to Hungarian news agency MTI. 

Logo of an OTP Banka branch in the oldtown of Trogir, Croatia. (Photo: LaMography/Christian Keszthelyi)

The amendments to the Consumer Lending Act approved by the Croatian Parliament establish the exchange rate valid at origination for the conversion, OTP Bank noted. OTP Bank said its unit, OTP banka Hrvatska, had already made HRK 66 mln of the total HRK 244 mln of provisions for the impact of the conversion.

ADVERTISEMENT

Czech economic confidence weakens in July Analysis

Czech economic confidence weakens in July

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.