Erste Group raises risk provisions in Hungary by more than €500 mln
Austria's Erste Group raised risk provisions in Hungary from €180.0bn to €701.3bn in Q1-Q3 from the same period a year earlier because of an early repayment scheme as well as political uncertainty and the economic outlook, Erste said in its third-quarter report on Friday.
A €200m provision was set up to cover expected losses resulting from the repayment scheme, which allows full early repayment of forex mortgages at a discounted exchanged rate, Erste said. A further €250m in provisions were made "in view of the economic outlook and the uncertain political climate in Hungary", it added.
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