Banks in Hungary are to settle with borrowers by the end of February in the case of court rejected unfair contracts, Fidesz’s group leader Antal Rogán said. Repayments on forex loans are expected to drop by 25-30%, the revealed Rogán at a news conference.
As part of the forex loan compensation law, a moratorium on raising rates or fees will be introduced until April 30, 2016, he said. According to Rogán the bill would be submitted to parliament on Friday and the vote held on Sept. 24. The 400 lenders affected will have to calculate the compensation for all foreign currency and forint loans taken out by some 1.3 million households, involving around 680,000 FX loan contracts and 650,000 forint ones, he added.
The refunds will first be calculated for forex loans, he said, with various deadlines set for the settlement before the end of February. According to a central bank estimate, the compensation will cost banks a combined 3 billion euros. The central bank will determine the formula to be used by banks for the calculation of refunds, Rogán said.
Earlier this week Rogán already reassured the public that “each client will be reimbursed for any unfairly collected amounts,” and that banks are required “to account for every single forint in connection with all retail loan agreements,” which is unprecedented in Europe.
via HungaryMatters, MTI photo Szilárd Koszticsák