Polish Prime Minister wins confidence vote
Hungary prepares new FX loans legislation
Hungarian forint eased yesterday after Economy Minister Mihaly Varga announced the government would submit new legislation regarding FX loans to the parliament this week. Based on the Supreme Court (Curia) ruling, government’s aim is to force banks to compensate borrowers for expenditures which may have been charged unlawfully. According to Curia’s ruling, borrowers should assume the risk of unfavourable exchange rate movement. Nevertheless the court disagrees with unilateral contract changes, or more specifically, with interest rate hikes (unless they met strict conditions) and also considers as unfair the practice of banks using different exchange rates (bid-ask spread) when disbursing the loans and when calculating instalments. If the legislation passed, which is very likely, involved banks would be hurt much more than had been expected.
Read the full report: FX Daily