10 Jul will certainly not have to inject more capital
Hungary loan law to cost Austrian lenders
VIENNA, July 10 (Reuters) A Hungarian law that makes banks compensate customers for loans canadagoosejacketsalesca black friday canada goose https://www.canadagoosejacketsalesca.co.uk deemed to be mispriced will cost Austrian lenders hundreds of millions of euros this year, canada goose factory sale adding to canada goose uk outlet their burdens in central and eastern Europe, the banks said.
The Canada Goose Outlet legislation approved by Hungary parliament last week could cost the financial sector 600 to 900 billion canada goose clearance sale forints ($2.6 $3.9 billion) in compensation, Hungary central bank has estimated.
Raiffeisen Bank International said it would take a charge of 120 million to 160 million euros ($164 million to $218 million) as a result of the new legislation.
estimates that this development could result in a canada goose clearance one off charge, including penalties, of between 120 million euros and 160 million, expected to buy canada goose jacket cheap be spread across the canada goose coats on sale second and third quarters, the bank said in a statement late on Wednesday.
statement allocation of the charge is currently being clarified, the bank said, canada goose black friday sale adding that the amount did not include costs relating to potential future conversion of uk canada goose foreign currency loans into local currency.
Rival Erste Group said on Thursday it saw a Canada Goose online hit of up to 300 million euros from the law, as it had flagged last week when warning it expected a record 2014 loss of Canada Goose Parka up to 1.6 billion euros.
Bank Austria, the central and eastern Europe arm of Italy UniCredit, was still calculating the impact but would earn money in Hungary this year in any event, Chief Executive Willibald Cernko said.
will have a Canada Goose sale positive annual result buy canada goose jacket in Hungary no matter what lies ahead, he told business journalists, noting the bank was focused more on corporate than retail lending. will certainly not have to inject more capital.
Hungary OTP canada goose Bank said last week the law would reduce its second cheap canada goose uk quarter pre tax earnings by about 25 billion forints.
Erste Group shares fell 5 percent, UniCredit 4.2 percent and canada goose coats RBI 2.5 percent by 1100 GMT.
The new law says that the exchange rate cheap Canada Goose spread uk canada goose outlet applied in foreign currency Canada Goose Jackets loan contracts the practice of banks canadian goose jacket using different rates when disbursing loans and when calculating monthly repayments was void.
The bill also canada goose uk black friday declared that unilateral changes in fees and interest rates, which banks made Canada Goose Coats On Sale after the 2008 financial crisis partly to pass on some of their higher foreign currency refinancing costs, were unfair unless banks can prove otherwise in canada goose store court.
Hungarian Prime Minister Viktor Orban government says these are unfair practices which the banks must pay for. It also wants to get rid of foreign currency loans once Canada Goose Online sought after for their low interest canada goose uk shop rates that have become an increasing burden for Hungarian households as the forint has weakened.