Are you sure?

Moratorium for unilateral changes to contracts

The government agreed with banks at a meeting on Friday on a two-month moratorium on unilateral changes to contracts, Prime Minister Gordon Bajnai said.

By September 1, banks will prepare a code of ethics, Bajnai said. After it is approved, the code will serve as the basis for banks' operations alongside stepped-up consumer protection activities of financial market regulator PSZÁF, Bajnai said. The code of ethics will eliminate banks' incentives to make unilateral changes to contracts by "cynically citing a pay rise for banking staff, for example," he added.

Hungarian Bank Association chairman Péter Felcsuti, answering a question, said commercial banks had not made unilateral changes to borrowers' contracts, rather the banks had only informed clients of reasons their contracts could be modified. (MTI-ECONEWS)