Raiffeisen Bank to make up for losses in Hungary
Thursday, January 26, 2012, 2:55 PM CET
Raiffeisen Bank Group expects an early repayment scheme for foreign currency-denominate mortgages at discounted exchange rates to generate a loss of €55m-60m for its business in Hungary, but plans to make up for the loss "in the foreseeable future", CEO Herbert Stepic said in Thursday’s issue of Austrian business daily Wirtschaftsblatt.
Mr Stepic said Raiffeisen have made provisions for even bigger losses from the early repayment scheme, which makes lenders cover the difference between market rates.
The CEO said that the bank’s position was expected to stabilise in 2013, and added they plan to remain in Hungary.
Raiffeisen Bank booked a €286m loss in Hungary in Q1-Q3, the bank said in November. Losses for the full year were expected to come to €320m.
Raiffeisen Bank will publish its Q4 results on March 29.