Hungarian Parliament Approves “Fair Banking” Law
- 26 Nov 2014 8:00 AM
Parliament approved a law on “fair banking” and a separate legislation on converting forex loans into home currency. The former establishes strict conditions for unilateral changes to interest rates and fees, as well as requires banks to provide adequate information before loan contracts are signed.
Justice Minister László Trócsányi said earlier that the legislation aimed at broadening the consumer protections.
Further legislation passed today on the conversion of foreign currency loans into forint ones will be implemented at the start of next year.
It is likely that conversions into forints could be made at 256.47 to the Swiss franc, 308.97 to the euro and 2,163 to the Japanese yen.
The law limits the interest spread above the three-month Budapest interbank offer rate (BUBOR) for converted loans to 1.0-4.5% for mortgages and 1.0-6.5% for other loans.
Source www.hungarymatters.hu
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