US EditionCJEU ruling on forex loans could open legal pandora’s box in Hungary
- On April 30, the European Union's highest judicial body ruled that it is unfair to transfer the entire currency risk to forex borrowers without providing them with sufficient information beforehand.
- This ruling focuses on a car leasing contract tied to Swiss francs from 2007, set against the widespread use of foreign currency loans prior to the 2008 financial crisis.
- The court requires national courts to reassess cases and restore consumers to their original financial positions, declaring contracts with unfair terms potentially void.
- Reports show up to 62% of Hungarian mortgages were foreign currency loans, with non-performing loan rates rising to 25%, prompting calls for full consumer redress.
- The ruling may trigger widespread lawsuits and reopen closed cases, while the government defers to courts and opposition pushes legislative intervention.
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Sándor Csányi to HVG: We will not enter the Polish market until the issue of foreign currency borrowers is resolved
We believe that the recent decision of the European Court of Justice will not fundamentally redraw the situation of Hungarian foreign currency borrowers, said Sándor Csányi, President of OTP Bank to HVG. And they will not appear on the Polish market until the case of foreign currency borrowers there is resolved. If the Pallas Athéné Foundation could provide adequate collateral and apply for a loan, OTP would not examine the issue from a politica…
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