Hungary: Jurisdiction Affects FX Loans and Banks

People ♦ Published: March 18, 2014; 18:34 ♦ (Vindobona)

Hungary’s constitutional court will exert influence on FX loans.

The Hungarian Constitutional Court ruled that the conditions of FX loan contracts can be changed with retrospective effect. / Picture: © Vindobona.org

The country’s constitutional court decided that it has the right to modify the terms of foreign currency loans – a contentious jurisdiction. The decision was made after a long struggle of difficult FX loans.

The court ruled that the conditions of FX loan contracts can be changed with retrospective effect. This rule avoids declaring FX loans completely as contrary to the…