Hungary’s supreme court is due to rule today on the validity of billions of euro in foreign-currency mortgages, a decision which could lead to their cancellation. The court will not only be ruling on the exchange-rate margins charged on the loans, but whether the banks provided sufficient information about the potential risk of changes to the exchange rate. The Hungarian forint nose-dived in 2008, driving up the monthly payments of Hungarians drastically just as the country’s economy tanked. Earlier this month, the court found against OTP bank which was charged with charging unfairly high exchange-rate rates on its customers.
