Kúria used full legal arsenal for FX decision, says chief judge

Issues

The Kúria, Hungary’s supreme court, did everything in its power under the rule of law, using all available legal tools, when it ruled on Monday that foreign currency-denominated loans are valid, the court’s chief, Péter Darák, said in an interview with national news service MTI.

The decision, taken in a legal uniformity procedure, was welcomed by markets but criticized by many politicians and borrowers. Darák said the Kúria had done everything it could in the framework of a legal uniformity procedure and that the judges were very aware of what they did not decide.

He said the decision did not adjudicate the several thousand individual cases forex-based loan borrowers have brought to the courts, even though the question of validity is also brought up in many of them. The cases involve more than a hundred different types of contracts drawn up by dozens of lenders that have different conditions, thus rulings on the question of validity may also differ, he explained.

Asked what direction the legal uniformity decision could give these cases, Darák said courts could only take decisions on these cases based on a review of each disputed contract. Even after the legal uniformity decision, the European Court’s stand on the Kúria’s question regarding unilateral changes to forex-based loan contracts could still affect these cases, he added.

He noted the lack of legislation on forex-based loans as well as judges relative inexperience in the area, adding that judges in other countries have no more experience, considering such loans are little known elsewhere.

Rate Freeze on SME Credit Ending April 1 Banking

Rate Freeze on SME Credit Ending April 1

Péter Magyar Enters Political Arena With Event Attracting Th... Elections

Péter Magyar Enters Political Arena With Event Attracting Th...

AutoWallis Becomes Importer of Geely Group’s Commercial EV B... Automotive

AutoWallis Becomes Importer of Geely Group’s Commercial EV B...

These Are the Most Sleep-friendly Hotels in Hungary Hotels

These Are the Most Sleep-friendly Hotels in Hungary

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.