February 18th, 2009

Lawyer to launch case against banks on behalf of foreign-currency borrowers

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A lawyer is to start a test case against banks, so that they co-share the financial burden caused by the weakening of the Hungarian forint currency with those who have credits based on stable currencies, the daily Magyar Nemzet wrote on Wednesday.

Lawyer Gyorgy Czirme was quoted by the paper as saying that the economic crisis evolved independent of both the Hungarian banks and their clients, so its consequences can not be only passed on the debtors.

In his opinion the parties could not have thought at the signing of their contract that the forint could weaken as much as it does now. In such cases there should be a way to amend these contracts “not unilaterally”. The biggest help for the debtors would be “if banks signed a fair deal with them”, the lawyer told the paper.

However, Magyar Nemzet noted that banks are of different view on the issue. According to them, in the leaflet on foreign currency-based credit agreements it is stated that rates of exchange may vary, the paper wrote.

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  1. Floyd Burgoz says:
    February 18, 2009 at 3:23 pm

    Get real people! This guy is kidding right. So I guess when the dollar or euro becomes weak I can do the same with my debts. Nice try Lawyer man, you won’t last a day in court.