Hungary’s OTP: Refunds For Borrowers’ Relief Could Be Bigger Than Expected
- 13 Aug 2014 9:00 AM
The impact of National Bank of Hungary guidelines on calculating refunds to be paid under borrowers’ relief legislation could generate bigger than expected losses for OTP Bank, the lender has said.
The pre-tax impact of refunds for using exchange rate margins could add up to 42 billion forints, it said. Early in July, when the legislation was approved, OTP had put the impact at 27 billion forints.
The effect of refunds for unilateral changes to contracts could reach 177 billion forints, compared to the earlier announced potential loss of 110-120 billion forints.
Under the recently approved legislation, lenders must refund clients for using exchange rate margins for foreign currency-denominated loans and for making unilateral changes to contracts.
Source www.hungarymatters.hu
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