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.
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.