FX loans: Court rejects 2 appeals, postpones 6 cases

Issues

The Budapest Municipal Court of Appeals rejected two appeals and postponed decisions in six lenders' contract defense cases on Thursday, news agency MTI reported. The court is hearing appeals of first-instant rulings in which lenders' defense of unilateral changes to loan contracts was not accepted.

Under legislation approved in the summer, banks must refund retail borrowers for making the changes to forint and foreign currency-denominated contracts unless they can successfully defend the practice in court. Compensation must also be paid for using exchange rate margins when calculating FX loan repayments. The refunds will be paid against borrowers' outstanding balances in most cases.

On Thursday, the court postponed the announcement of its decision on appeals by Magyar Cetelem Bank, Budapest Autófinanszírozási, FHB Jelzálogbank and FHB Kereskedelmi Bank until October 21. Decisions on appeals by Erste Bank and CIB Ingatlanlízing will be announced on October 22. The court rejected the appeals of Sopron Bank Burgenland and of Pannon TakarékBank, thus making the respective rulings, declaring the two banks' practice regarding unilateral contract changes unfair, final.

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