OTP sees most clients taking part in FX loan scheme

BUDAPEST: Hungary's OTP Bank said on Friday it expected most of its remaining 130,000 foreign currency mortgage loan clients to take part in a government mandated scheme that fixes the repayment rate on FX loans below market rates.

OTP Deputy Chief Executive Laszlo Bencsik told reporters that the bank's interest income will decline as a result, while at the same time it will probably benefit the bank's non-performing loan rates and its risk costs will also decline.

The bank, emerging Europe's largest lender, posted a rare loss in the fourth quarter on a string of one-off items.

OTP shares traded at 3,755 forints at 0922 GMT, up 1.5 percent, against a 1 percent gain in the wider market.