BUDAPEST, July 4 Hungary's parliament has
approved legislation on Friday to cut bank charges on foreign
currency and forint-denominated loans retroactively, which could
cost the country's banks billions of euros in compensation to
The law is the first step of a relief scheme for Hungarians
struggling to manage the foreign currency loans that were once
popular for their low interest rates prior to the 2008 crisis,
but turned sour when the forint weakened.
Settlement of the compensation to borrowers is planned for
the autumn under a second bill.
(Reporting by Krisztina Than and Sandor Peto)