BUDAPEST, June 16 Hungary's Supreme Court ruled
on Monday that the exchange rate risk borrowers took on when
getting a foreign currency loan could be considered unfair only
if borrowers could not realistically assess the scale of
possible shifts in market rates.
In a landmark ruling that Prime Minister Viktor Orban's
government plans to use as a legal template to get rid of the
toxic loans, the court also said the practice of banks applying
different exchange rates when disbursing the loan and when
repayments were due was unfair.
It said unilateral contract changes by banks were acceptable
only if they were in line with a detailed set of conditions laid
out in its ruling. The ruling does not apply retroactively but
serves as a guidance to courts in pending cases.
(Reporting by Gergely Szakacs; Editing by Alison Williams)