Budapest accused of fleecing Austrian banks

Published on 13 September 2011 at 12:01


The appreciation of the Swiss Franc threatens relations between Austria and Hungary. “Expropriation of banks: Vienna files a suit against Budapest,” announces Austrian daily Der Standard. The Austrian government’s anger towards its Hungarian counterpart isn’t abating over a plan to allow debtors to repay their loans at fixed – and advantageous – rates. Hungarians would be allowed to reimburse their loans in Swiss Francs at a rate of 180 forints rather than 240 and loans in euros at a rate of 250 forints rather than 280.

Losses would be absorbed by the banks, which outrages Austrian banks, which have holdings worth €5 billion in Hungary. Vienna asked the European Commission to examine the possibility of a suit before the European Court of Justice. [Der Standard believes](http:// that Budapest is shooting itself in the foot because, by intervening in private contracts, it risks causing investors to flee.

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Voxeurop needs you. Join our community!

On the same topic