Bank Association refers early full repayment scheme to Constitutional Court

Issues

Hungary's Bank Association is referring the law, incorporating the government’s plan to allow forex debtors to repay their debt early and fully, to the Constitutional Court, the association said in a statement on Monday.

The petition asks the court to establish that the law concerned is against Hungary's constitution.

Earlier, the President of Hungary, Pál Schmitt told the Bank Association in an open letter that "possible harms coming the banks way are not larger than what financial institutions are expected to bear in the name of mutual and common risk taking". The President thus explained why he signed the bill into law, answering a letter of the Bank Association asking him to send the draft bill to the Constitutional Court.

Under the government-authored scheme, retail forex mortgages may be repaid early, in full, at a discounted exchange rate, with banks covering the cost of the difference from the market exchange rate.

ADVERTISEMENT

Takarékbank lowers 2021 GDP growth forecast to 6.9% Analysis

Takarékbank lowers 2021 GDP growth forecast to 6.9%

Márki-Zay tests positive for COVID-19 Elections

Márki-Zay tests positive for COVID-19

New partner announced at act Bán & Karika Attorneys at Law Appointments

New partner announced at act Bán & Karika Attorneys at Law

Most districts not planning mandatory vaccination at kinderg... City

Most districts not planning mandatory vaccination at kinderg...

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.