Although no details have emerged, analysts say the bank sector could lose several hundred billion forints if such a regulation were enacted with retroactive force.
As OTP shares tumbled, the forint also weakened slightly, but later recovered.
Analysts told Napi Gazdaság that the chances of the government launching a broad scheme similar to the early repayment of foreign-currency mortgage debt grow higher as elections draw nearer.
Yesterday’s market jitters were not a surprise, given the unfavourable experiences of the last two years, observed Buda-Cash trader Zoltán Réczey.
Report Of Mortgage Rescue Plan Revives Old Fears In Hungary
OTP shares got hammered on Wednesday, falling 3.6%, on news that the government intends to provide further relief to foreign-currency mortgage debtors. Deputy prime minister Tibor Navracsics said in a Tuesday night interview that the government was examining the legal possibilities for amending such mortgage contracts.
