BUDAPEST: The Hungarian Banking Association has asked President of the Republic Janos Ader to refer a new law, which details the rules of refunds for banks to retail borrowers, to the Constitutional Court instead of signing it, the group said in a statement on Monday.

It said the law passed by parliament last week puts a huge burden on banks by setting rules retroactively for the refunds to retail borrowers on past fees and interest rate hikes.

The refunds are expected to cost banks about 1 trillion forints($4.07 billion).

Copyright Reuters, 2014