Banks In Hungary To Pay 9.5 Billion Forint Fine For Cartel
- 21 Nov 2013 8:00 AM
Hungary’s Competition Authority (GVH) has imposed a 9.5 billion forint fine on 11 commercial banks for the operation of an illegal collusion (cartel) during a repayment scheme for foreign currency mortgage-holders two years ago. According to the GVH, the banks cooperated and shared confidential business information between September 2011 and January 2012 to reduce the scale of mortgage repayments.
Hungary’s OTP Bank Nyrt received the biggest fine (3.9 billion forint), followed by Erste Bank Hungary Zrt with a 1.7 billion forint penalty. The rest of the banks will have to pay the following sums: K&H: 983.3 million, CIB: 834.4 million, MKB: 783 million, Raiffeisen: 583.6 million, UniCredit: 306.3 million, Budapest Bank: 283.5 million, UCB Ingatlanhitel: 63.2 million, Takarékbank: 1 million, and Citibank: 0.8 million.
The investigation of the banks’ cartel activities was initiated by Fidesz member, Antal Rogan two years ago.
In a statement OTP said that the fine is unjustified and that it will seek legal redress.
Erste Bank Hungary Zrt also denied any wrongdoing and said that it is still deciding whether to take legal action against the fine.
The 9.5 billion forint penalty is by far the largest fine ever imposed by the GVH.
Source: Origo
By Tímea Klincsek for XpatLoop.com
Proofread by Írj Jól Szolgáltató Kft
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