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Court rejects Sberbank contract defense

Issues

The Municipal Court of Budapest rejected Sberbank Magyarország's defense of changes it made to borrowers' contracts in a ruling today, Hungarian news agency MTI reported.

The judge in the case said Sberbank's contract conditions failed to comply with the principles of objectivity, actuality and proportionality.

Sberbank is one of a number of lenders defending unilateral changes to loan contracts in court. Under borrowers' relief legislation approved in the summer, banks were ordered to refund clients unless they could convince the courts the modifications were fair.

Of the more than 30 rulings the court has made in the cases, just three have been in favour of banks, albeit only partially. In cases involving four lenders, the matter was referred to the Constitutional Court.

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