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21st December, 2018

Strasbourg court turns down OTP’s complaint

The European Court of Human Rights has rejected a claim submitted by OTP regarding a 2014 Hungarian regulation, the bank announced on the BSE website.

Parliament in 2014 approved regulations which stipulated that some terms of foreign-currency and forint-denominated loan contracts violated certain provisions of the European Convention on Human Rights.

OTP filed a complaint to the Strasbourg court in 2015, but did not publicise the fact, Portfolio noted.

The 2014 law also required banks to reimburse borrowers for fees and surcharges levied during the lending period that were deemed to be unfair.

The regulation called on banks to convert foreign-currency mortgage loans to forint-denominated debt. These measures caused financial losses of up to Ft 100 billion for the bank sector, including OTP.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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