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HATC SAMPLE EDITION:
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7th May, 2025
ECJ rules in favour of borrowers on forex loans
The European Court of Justice (ECJ) in a ruling issued on April 30 found that passing the full currency risk onto borrowers, without adequate prior information, constitutes an unfair contractual term and, as a result, such contracts can be rendered void.
In a decision centred on a 2007 leasing contract in Swiss francs, the ECJ ruled that the loan agreement that allowed the lender to apply the buying exchange rate when disbursing the loan and use the selling rate for repayments is invalid.
Under the ruling, only the original loan principal must be repaid by the borrower and the client does not have to bear exchange-rate losses.
The ECJ also said that national courts must re-examine earlier cases.
Economy Minister Márton Nagy said the government sees no need to intervene, stressing that “this is now a matter for the courts.”
The key question is whether banks informed customers of the exchange rate and interest-rate risks before signing or not, he observed.
Nagy added that the Kúria, Hungary’s highest court, should authorise the reopening of closed cases.
In a statement, the MNB said it respects the decisions of both domestic and international courts and refrains from commenting on them.
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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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