On Monday, the Kúria, said that lending in foreign currency and related contracts are legal and the client should bear the risks related to exchange rate fluctuations.

Contracts can be changed in one of three ways, Darák said. Lenders and borrowers can strike new deals, the courts can rule in individual disputes, or MPs can rewrite the law. Currently, limited legal means exist in Hungary to tackle this problem, partly due to a lack of relevant regulations and partly because of a dearth of precedents in such cases, he said.

The Kuria’s recent ruling, which serves as guidance to the lower courts, is not the only influence on the thousands of ongoing cases, he noted, adding that there remains an open case at the Luxembourg-based European Court of Justice.

Source www.hungarymatters.hu

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