Good Finance Bank expects negative impact of up to € 300 million ($ 92.8 billion) on a law to resolve certain issues related to the Unity Resolution on Consumer Loans, the bank said in a statement to MTI on Tuesday.
Good Finance emphasizes that its loan agreements
Finance emphasizes that its loan agreements” />
Have always been in compliance with applicable legislation and that the bank has acted lawfully in accordance with the contractual terms. Good Finance Bank Hungary Zrt. Has fully complied with the unilateral contract modification rules, and has always adjusted the interest rates carefully and lawfully.
Good Finance Bank Hungary Zrt. Will accordingly avail itself of the legal opportunities granted by Hungarian law – read the Bank’s reply.
Several banks have announced that they are examining all available law
In recent days, several banks have announced that they are examining all available law enforcement options to prove that their consumer credit agreement procedures have always been fair and in compliance with applicable law.
Good Credit Bank Zrt.
Has decided to make a provision of HUF 20 billion to adjust the exchange rate margin on consumer foreign currency loans and wants to prove in court that its contract changes were fair, the bank said Monday.
Goodbank Bank Zrt. Also announced on Monday that, due to the non-use of the exchange rate margin, a provision of HUF 5.1 billion was made in the first half of 2014 to cover settlement with clients.
FHB announced in early July that, according to preliminary estimates, the FHB Group is expected to incur a repayment obligation of approximately $ 4.5 billion due to the non-use of the exchange rate margin, to which the group made a provision in the second quarter.
Due to the non-utilization of the exchange rate margin, E-bank Mortgage Bank Ltd. is expected to reimburse its customers about HUF 8.1 billion, with a negative impact on pre-tax profit of HUF 6.7 billion and unilateral contract changes of HUF 68.6 billion but the bank wants to exercise its right of action in this matter, the mortgage bank published on the Budapest Stock Exchange (BSE) website on Monday.
The E-bank Group as a whole is expected to pay back HUF 27 billion
Taking into account the risk cost incurred for this purpose in 2013, the negative profit before tax could amount to approximately HUF 25 billion, which will be accounted for in Q2 2014. This amount is about HUF 20 billion higher than previously expected.
According to the bank, lawsuits involving a unilateral contract amendment could affect nearly HUF 90 billion in foreign currency loans and another HUF 20-30 billion in HUF mortgages and consumer loans. The approved version of the law increased the expected amount by $ 40 billion, also due to the statute of limitations, the bank announced in early July.