“It is obvious that Erste is abusing its power against a weak local government exposed to exchange-rate volatility, just as it did against Hungarian citizens struggling with increased instalments,” Lázár declared.

Lázár is ignoring the fact that the conditions of the bond issue were set by the city, Napi Gazdaság writes.
Lázár, who is also head of the Fidesz caucus in Parliament, wrote to Erste Bank chairman and CEO Radovan Jelasic on December 29, asking the bank to share the losses caused by the strengthening Swiss franc. He requested a reply by January 30; the answer arrived on January 29.

In his letter, Lázár threatened to take up the matter in Parliament and in the cabinet if Erste did not co-operate. The city council will address the question at its meeting tomorrow, Lázár announced.
City employees have closed their accounts at Erste Bank, probably not without pressure, Népszabadság comments."

Source: Hungary Around the Clock

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