Repayment installments denominated in foreign currency may be reduced by February next, or in March, in the case of the clients of the lawsuit banks, due to the settlement law. A critique at indianpropertyloans.com
Repayment installments could be 25-30 percent lower, said Antal Rogán, Good Finance’s group leader at a press conference in Budapest on Friday, announcing the decisions of Good Finance-KDNP’s opening session in Tapolca.
In a nearly one-hour briefing
Good Finance politician outlined the timetable for bank settlements resulting from unfair exchange rate margins and unilateral contract changes in Tapolca. According to this, the government will submit the bill to parliament on Friday, which will begin debating on September 16 and voting on it on September 24. The 400 affected financial institutions have to account for all consumer foreign currency and forint loans, which affected a total of approximately 1.3 million families – approximately 680 thousand foreign currency and 650 thousand forints-based loans.
First of all, it has to be settled for foreign currency borrowers due to the use of unfair exchange rate margins and unilateral contract changes: for non-litigious banks, 15-29 January 2015 they must send their accounts between their clients, and the 79 financial institutions that sue, from February 14-28. between. The former will cut their installments for FX-denominated customers from February, while the latter will reduce their installments from March – he informed.
Forint-based creditors – January 5-12, 2015 for Unfair Unilateral Contract Modifications it will be between the start of the trial, Antal Rogán said. For non-litigation banks April 16-30. between August 15 and 29 for lawyers. they must send their settlement to their forint-certified customers between.
According to him, for an average foreign currency borrower, installments and interest may fall by 25 percent, or it may be as high as 30 percent.
For clients who have a live contract
He explained, the bank should treat unfairly taken-up funds as clearing the client, thereby reducing capital and, consequently, interest.
The leader of the group also announced that the clearing law requires banks to return to contractual interest rates, which means that unilateral increases in interest rates are unfair, and at the same time introduces a moratorium on interest rate increases by 30 April 2016 at the latest. Under a moratorium on interest rate increases, a financial institution will not be entitled to unilateral increases in interest, costs or fees. By the 2016 deadline, Parliament will pass further legislation to shift banks to transparent pricing. They expect that if fair-pricing lending conditions are in place, people will also dare to borrow more.
Speaking of special cases, Antal Rogán explained that if the contract has already been terminated, the bank will have to settle in cash with these deadlines. For loans that were terminated before July 26, 2009, the financial institution is not required to account for the expiration.
The bank also has to settle with the repayers at the customer’s request,
But in these cases, the financial institution is entitled to deduct the amount of the discount applied at the end of the repayment, he said. Final repayers may initiate this at their bank next March, which is due in November.
Customers who have entered into a foreign exchange barrier will also be cleared, but they will first have to deduct the amount from the pool and then reduce their existing debt.
The politician also said that the Clearing Act authorizes the National Bank of Hungary (MNB) to issue regulations on the basis of formulas for settling accounts with financial institutions’ clients. The MNB will also have the right to verify the settlement of each loan contract and customer. The central bank will also decide on the settlement form.
Antal Rogán said in a question that the Hungarian banking system has to repay the families around HUF 1 billion.
Concerning the issue of the conversion of foreign currency loans into forint, he confirmed that they maintained their intention to do so, but a decision had not yet been taken.