Constitutional Court rules on borrowers' relief law
Hungary's Constitutional Court on Tuesday said provisions in borrowers' relief legislation prohibiting unilateral changes to loan contracts did not go against the fundamental law. Judges of the Budapest Municipal Court had asked the court to review the law.
The Constitutional Court noted that the decision was taken only on the unilateral contract changes and its review did not cover the use of exchange rate margins.
The borrowers' relief legislation approved in the summer requires lenders to compensate retail clients for using exchange rate margins when calculating repayments for foreign currency-denominated loans and for making unilateral changes to both FX and forint loan contracts.
Separate legislation, approved later, outlined the way banks are to make the refunds.
Banks were allowed legal recourse regarding the unilateral changes to contracts.
The Constitutional Court noted that it had weighed the questions of whether the provisions in the borrowers' relief legislation went against the principle of introducing legislation with retroactive effect and whether the legal recourse allowed lenders was in line with fair legal process.
The review was undertaken based on motions submitted by judges in three appealable rulings.
The Constitutional Court said it was continuing its review of motions made in such cases by the Budapest Municipal Court of Appeals and would soon take a decision on them.
Fuel Prices Move Closer to Avg of Neighboring Countries
Hungary, China to Sign Agreements During Visit by President
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
