Hungary to Force Banks to Foot Franc Losses, Irking Austria
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Hungary is set to force lenders to swallow currency losses on Swiss franc mortgages. Financial stocks and the forint fell as the country’s banks and the Austrian government criticized the plan.
Hungary wants to allow fixing the Swiss franc at more than 20 percent below market rates for early repayment, Prime Minister Viktor Orban said today in parliament. Austria “firmly rejects” the measure, which may cause “enormous losses” to banks and risks regional financial stability, Finance Minister Maria Fekter said today. Erste Group Bank AG and Raiffeisen Bank International AG dropped, while Hungary’s risk rose.
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Hungary to Force Banks to Foot Franc Losses, Irking Austria