The decision by the Hungarian government to bail out citizens who took out foreign currency loans before the crisis continues to emit shockwaves through the country’s financial sector. Most recently, the portfolio.hu website is predicting that OTP Bank will reveal record losses for Q2 2014. With the borrower relief package likely to cost the bank on the order of HUF 200bn, the site predicts that it could report an unprecedented HUF 150bn loss for the three-month period. The surprisingly gloomy numbers stem from clairifications on the method of calculating the level of compensation borrowers are due. The cost to OTP is roughly 50 percent higher than it ancitipated, according to portfolio.hu.
