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European Court says Hungary can amend unfair foreign currency loan term
April 30, 2014 / 8:42 AM / 3 years ago

European Court says Hungary can amend unfair foreign currency loan term

BUDAPEST, April 30 (Reuters) - Hungary’s national court can amend an unfair term in foreign currency loan contract, the European Court of Justice said on Wednesday in a ruling that could influence legislation to help troubled Hungarian foreign currency borrowers.

The case involved in the ruling had been referred to the court by Hungary’s supreme court, the Kuria, which could make a ruling of its own in the second half of the year.

The original lawsuit was launched against OTP Bank by Hungarian borrowers who complained that they got a Swiss franc loan at the bank’s buying exchange rate, but had to pay instalments and other costs at the selling exchange rate.

The European Court of Justice also said it was up to the Hungarian court to determine whether the terms of the total cost of the foreign currency loans were sufficiently clear to borrowers. (Reporting by Gergely Szakacs, Sandor Peto)

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