Foreign Currency Loans before the Financial Arbitration Board – Coming to a closure?

According to the latest decision of the Central Bank Of Hungary (MNB) from May 1, 2017 financial institutions will no longer have to publish the fact of the completion of their settlement obligations and other information related to settlement and exchanging rates. The decision suggests that settlement cases were closed by the beginning of 2017 – typically by termination.
 
Statistical data, which has been published by the MNB, indicate that almost 17 thousand cases were launched before the Financial Arbitration Board (PBT). The extreme number of the cases also means that the PBT could take a great load off of the court’s shoulders and could also guarantee the quick closure of the proceedings; only 2300 cases have been continued before the courts following the decision of the PBT.
 
90% of the proceedings were terminated by the PBT which means that the conduct of the financial intuitions were in line with the principles of calculations and formulae determined by the MNB and also that the institutes acted in accordance with the “settlement act” and in a fair way; thus the PBT, after carrying out the actual calculations, approved the settlements. Parties concluded a mutual agreement in 150 cases.
 
When the parties cannot settle their dispute in the given case between themselves, the primary way for a peaceful and quick solution is going to the PBT instead of initiating a court case. The PBT provides not only a prompt administration but this kind of dispute resolution is free of charge, and it has a greater chance that parties can reach a settlement than in a way longer and more expensive lawsuit.
 
For personalized information regarding peaceful arbitration or PBT proceedings do not hesitate to contact the experts at Ecovis Hungary Legal.