OTP Falls Third Day on Orban Loan Plan; Forint Drops to Year-Low

OTP Bank Nyrt. declined for a third day after a suspension yesterday and the forint fell to a year-low as Prime Minister Viktor Orban confirmed a plan to force banks to accept losses tied to foreign-currency mortgages.

OTP fell as much as 8.3 percent and weakened 2.7 percent to 3,638 forint at the 5 p.m. end of trading in Budapest. Hungary’s second-largest mortgage lender Foldhitel es Jelzalogbank Nyrt, or FHB, dropped 3.2 percent to 570 forint, helping to drag the benchmark BUX index 0.3 percent lower. Hungary’s forint depreciated as much as 1 percent to the weakest in a year.