BUDAPEST, July 21 Hungary-based OTP Bank's
mortgage unit said on Monday that new legislation on
unilateral loan contract changes that took effect last week
could cost nearly 68.6 billion forints ($300.4 million), adding
it was exploring ways of legal remedy.
"OTP Mortgage Bank Ltd continues to uphold its stance that
in its lending practices it has always fully complied with the
effective legal provisions and regulations," the bank said in a
The law was drafted by Prime Minister Viktor Orban's
government as part of efforts to cut borrowers' repayments,
mostly on foreign currency loans but also in forint debt.
OTP said another provision in the law, affecting exchange
rate spreads in forex loans, would cut its pretax profit by 6.7
billion forints, which it planned to book in the second quarter.
($1 = 228.39 Hungarian Forints)
(Reporting by Gergely Szakacs; Editing by David Holmes)