Oct. 15 (Bloomberg) -- Oesterreichische Volksbanken AG's Hungarian unit has suspended Swiss Franc and U.S. dollar loans, Nepszabadsag reported, citing Erik Gobl, a bank official at the local unit's marketing department.

The bank, which declined to elaborate on the decision, will continue to lend euros, the newspaper reported.

Bayerische Landesbank was the first bank in Hungary this week to announce the suspension of new foreign-currency personal loans, saying the volatility of the forint made them too risky for clients.

To contact the reporter on this story: Zoltan Simon in Budapest at zsimon@bloomberg.net

Last Updated: October 15, 2008 02:09 EDT