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Hungary Can Amend Foreign-Currency Loan Terms, Court Says

Hungarian lawmakers can retroactively amend the terms of some loan contracts, the Constitutional Court said in response to a government request concerning about $15 billion in foreign-currency mortgages.

Private contracts can be amended by lawmakers under “extraordinary circumstances” involving a large number of similar cases where one party’s interest is disproportionately hurt by changed circumstances, Constitutional Court President Peter Paczolay said today in Budapest. The government plans to to phase out such loans after parliamentary elections, ruling party lawmaker Gergely Gulyas said today.