Loan refunds could cost banks 3 bln euros - Hungary minister

NYIREGYHAZA, Sept 4 Thu Sep 4, 2014 9:56am EDT

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NYIREGYHAZA, Sept 4 (Reuters) - Refunds to clients on loans could cost the bank sector in Hungary about 3 billion euros, Economy Minister Mihaly Varga told a conference of economists on Thursday in eastern Hungary.

Varga said this was an estimate by his ministry and the final number would be known only after parliament decides on how banks are to settle the compensation with their borrowers.

The figure is in line with an earlier estimate by the National Bank of Hungary. Hungary plans to make banks repay borrowers by the end of February for past loan charges the government and the courts have found unfair, a senior ruling party lawmaker said late on Wednesday.

(Reporting by Krisztina Than; editing by Andrew Roche)


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