June 3, 2014 / 10:02 AM / in 4 years

Hungary's top court rules against OTP Bank on exchange rate margin

BUDAPEST, June 3 (Reuters) - Hungary’s top court ruled on Tuesday that the exchange rate margin applied by OTP Bank on a foreign currency mortgage was unfair and invalid, in a case that could guide the government when it decides on new help for troubled borrowers.

The supreme court, or Kuria, said the exchange rate spread - the difference between the rate at which the loan was disbursed and at which instalments and costs are paid - was invalid in a specific loan contract challenged by a borrower.

The Kuria said the bank would have to apply the official exchange rate of the National Bank of Hungary on the disbursement and also on the instalments.

Reporting by Krisztina Than; Editing by John Stonestreet

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