Hungary: High Losses for Banks

Professional ServicesBanks ♦ Published: January 4, 2012; 17:36 ♦ (Vindobona)

According to the Hungarian banking association, costs for the coerced conversion of foreign currency loans reach about € 952m.

Hungary: High Losses for Banks / Picture: ©

In Hungary, where Austrian banks are highly engaged, the controversial foreign currency loan conversion causes massive costs for the banking industry. For Austrian banks, not Greece, but Hungary is the biggest problem, Herbert Stepic (CEO of Raiffeisen Bank International) says.

The local banking association numbers minimum costs to € 952m. However, further costs of € 1.5bn…