Kúria to take legal uniformity decision on forex-based loans [Update: Orbán comments]


Hungary’s supreme court, the Kúria, yesterday announced it believes it will be necessary to take a legal uniformity decision on questions of the validity of foreign currency-denominated loans.

The court issued the statement after a meeting of Kúria judges with their peers at the Szeged Civil Court of Appeals, the first court in Hungary to deal with the question of the validity of forex-based loan contracts.

The motion to launch the procedure will be posted on the Kúria’s website on November 25.
Prime Minister Viktor Orbán said a week ago that a legal uniformity decision by the court would allow the government to take a decision on the forex-based loans that “is in harmony with the legal position established by the judiciary.”

Update: The PM this morning took to the airwaves to comment on the issue from Japan via that radio station on which he seemingly most frequently guests. Report from national news service MTI runs below.

Hungary’s government expects the judiciary to decide whether banks or borrowers should bear the burden of losses on foreign currency-denominated loans resulting from exchange rate changes, Orbán said in an interview on public radio broadcast early Friday.

Orbán told Kossuth Rádió that “sober values would otherwise dictate” that banks should carry the burden, noting their strength and their professional competence.

He said the government also expected the judiciary to take a decision on whether banks can make unilateral changes to interest rates on loans that were taken out earlier.

Asked whether there was a deadline for the court to take the decisions, Orbán said the government does not rush the judiciary, but added that he hoped to see the decisions “as soon as possible.”


Hungary Inflation Rate at 21.5% in May Figures

Hungary Inflation Rate at 21.5% in May

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Industrial Production Declines in April Manufacturing

Industrial Production Declines in April

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov... History

Landmark Budapest Dept Store to Reopen After HUF 8 bln Renov...


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.