Moving quickly on its campaign promise to find a solution to the country’s foreign exchange loan debacle, Hungary’s government presented parliament that’s even tougher on the nation’s banks than had been expected. Not only will they come under pressure to provide compensation to clients with foreign currency mortgages, but to holders of local currency loans as well. The justification for this is that the banks unilaterally rasied interest rates on their clients. In all, the level of compensation could €1bn, or 11 percent of the banking sector’s total capital. The government’s move follows a decision by the nation’s supreme court that found the bank’s treatment of customers to be illegal.
