OTP Romania relieves clients of CHF 23 mln debt in conversion scheme

MNB

Photo by Jessica Fejos

OTP Bank Romania has so far relieved 2,600 clients of a combined CHF 23 million in debt as part of a three-month loan conversion program that winds up in ten days, the lender said yesterday, according to Hungarian news agency MTI.

OTP Bank Romania is offering a partial cancellation of debt and lower interest rates to more than 10,000 of its clients if they convert their Swiss franc loans to Romanian lei or euros. 

So far, 8,400 clients have expressed interest in the program, 4,300 have formally asked to participate and 2,600 have signed conversion contracts.

OTP Bank Romaniaʼs Swiss franc portfolio is worth approximately CHF 500 mln.

In a third-quarter earnings report, released in November, OTP Bank noted a HUF 25.5 billion negative impact from FX loan conversions at the Romanian unit during the period. It said the one-off negative effect of the conversion, including a discount for borrowers as well as the positive effect of the release of unamortised commissions, would come to about HUF 30 bln, before tax.

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