Budapest court to hear unilateral FX loan issues

Issues

The Budapest Capital Regional Court will on Friday hear the first challenge from financial institutions to the unfairness of the unilateral amendment of foreign-currency-denominated loan contracts. Kéthely és Vidéke Társszövetkezet launched the challenge to be heard on Friday.

The next case to be heard will be the filing of K&H Bank, the unit of Belgium's KBC, on Monday. The number of filings for remedy surpassed 30 by the beginning of this week. Banks and financial institutions must submit the challenges by August 25 the latest.

The court has to put the cases on its agenda in eight days and must reach a verdict in 30 days. A piece of legislation approved by lawmakers in July will require banks to compensate retail borrowers for the use of exchange rate margins and for making unilateral changes to contracts.

The legislation declared unilateral changes to retail loan contracts unfair unless banks prove otherwise at court.

ADVERTISEMENT

Hungary the Most Corrupt Country in EU According to TI Analysis

Hungary the Most Corrupt Country in EU According to TI

Gov't Guarantees on Liabilities Climb Over 9% of GDP in 2021 Government

Gov't Guarantees on Liabilities Climb Over 9% of GDP in 2021

Electrolux to Cease Production at Nyíregyháza Plant Manufacturing

Electrolux to Cease Production at Nyíregyháza Plant

Hungary Mandates Labeling Practices for Insect-based Foods Food

Hungary Mandates Labeling Practices for Insect-based Foods

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.