Monday 16 December 2013

Hungary’s high court ruling boosts banks, upholds rule of law | beyondbrics

Hungary’s high court ruling boosts banks, upholds rule of law | beyondbrics:

"A ruling on Monday by the Kuria, Hungary’s supreme court, that foreign-currency loans issued in the past decade by local banks were legal, triggered a jump in shares of OTP, Hungary’s largest bank, on the Budapest Stock Exchange. The stock – often seen as a proxy for the Hungarian economy – gained more than 5 per cent to Ft 4,420 in the early afternoon, before easing back to close at Ft 4,311, up 2.8 per cent.

Foreign-currency loans, predominantly in Swiss francs, became hugely popular in Hungary between 2001 and 2008 as borrowers rushed to take advantage of much lower interest rates than those on loans taken out in forint, the local currency.

However, the economic downturn in 2008 saw tens of thousands of households struggling to meet higher monthly repayments as the forint tumbled against both the franc and the euro."

'via Blog this'

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