OTP Bank has the third largest portfolio of Swiss franc loans after Volksbank and Raiffeisen on the Romanian market. The bank is inviting clients to come and ask for the procedure that would lead to 20%-30% lower monthly installments.
OTP’s concern in supporting clients is even greater as around 70% of its mortgage loans are in Swiss francs. The Hungarian bank is also the one that brought the exotic currency on the market back in 2005.
OTP hopes that the six-month period during which it offers a lower interest rate will be enough for current tensions to be overcome, but specifies the incentive may be extended every six months at clients’ request. It remains to be seen under what conditions.
“OTP Bank Romania has understood its clients’ needs and decided to come up with solutions for those who are having trouble paying installments,” said Laszlo Diosi, general manager of the bank.
For the time being, OTP is the only one of the nine banks to announce standard moves to support clients with Swiss franc loans. The moves can help clients avoid default, but any loan restructuring finally leads to higher overall loan costs.
(English version by Catalina Apostoiu; Editing by Radu Bostan)