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Hungary submits bill tackling FX loans after court ruling
June 27, 2014 / 12:41 PM / 3 years ago

Hungary submits bill tackling FX loans after court ruling

BUDAPEST, June 27 (Reuters) - Hungary’s government submitted legislation to parliament on Friday, declaring that several costs banks had charged foreign currency and forint borrowers were unfair, implementing a recent Supreme Court ruling for all clients involved.

The draft bill published on parliament’s website says the exchange rate spread applied in foreign currency loan contracts, banks using different rates when disbursing loans and when calculating monthly repayments, was void.

The bill, subject to approval by lawmakers, orders a recalculation of spreads within 90 days of the law taking effect based on the central bank’s official exchange rates.

It also declares unilateral interest and fee rises in loan contracts, both forint-denominated and foreign currency loans, unfair and void unless banks challenge this provision and prove their right with tight deadlines. (Reporting by Gergely Szakacs and Krisztina Than)

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