Source link : https://europ.info/2025/06/02/hungarys-banks-push-for-constitutional-court-to-overturn-orbans-mortgage-rate-freeze/
Budapest – Hungary’s leading banks have formally urged the Constitutional Court to overturn the government’s controversial mortgage rate freeze, a measure introduced by Prime Minister Viktor Orbán’s administration to shield borrowers from rising interest costs amid soaring inflation. The freeze, implemented last year as part of a broad intervention in the financial sector, has sparked growing tensions between the government and lenders, who argue that the policy undermines contractual agreements and threatens the banking sector’s stability. Reuters reports on the latest developments as the dispute moves into the judicial arena, highlighting the broader economic and political implications for Hungary’s struggling housing market and financial system.
Hungary’s Banks Challenge Government Mortgage Rate Freeze at Constitutional Court
Hungary’s leading financial institutions have formally submitted a petition to the Constitutional Court, contesting the government-imposed freeze on mortgage interest rates. The banks argue that the freeze disrupts free market principles and undermines contractual agreements, potentially destabilizing the credit environment. According to industry representatives, the intervention adversely affects liquidity and risks eroding investor confidence, which could have long-term repercussions on Hungary’s banking sector and mortgage market.
The legal challenge highlights several key concerns raised by the banks:
- Economic…
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Author : Jackson Lee
Publish date : 2025-06-02 02:04:00
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