OTP Bank claims that its Croatian subsidiary suffered a loss of 224 million kuna due to a 2015 law.

OTP Bank Plc. It has initiated international arbitration proceedings at the International Center for Settlement of Investment Disputes (ICSID) against Croatia.

According to the OTP, posted on its website, Croatia has violated the investment protection agreement between Hungary and Croatia by requiring mandatory foreign currency conversion and foreign currency-based retail loans.

The announcement states that the Croatian subsidiary of OTP Bank Plc. It suffered an estimated loss of Croatian kuna (approximately 10 billion 778 million HUF) due to Croatian legal regulation. According to the 2015 regulation, at the request of debtors of retail loans contracted in Swiss francs or on the basis of Swiss francs, Croatian banks are obliged to convert the currency of retail loans granted into euros or euros.

at the rate and interest at the time of disbursement.

In other words, the Croatian system differed from the Hungarian, since here a subsequently determined exchange rate was the basis for the conversion of forint of foreign currency loans.

Although the loss suffered has already been recorded by the OTP Group, it has not waived the right to negotiate or legally recover the amount. According to the notice, to protect the interests of shareholders, investors and other interested parties, it has become necessary to initiate an arbitration procedure.

This is not the first case brought by a Hungarian company against Croatia at ICSID. MOL has filed a complaint with the Washington-based organization in relation to the criminal proceedings against President Zsolt Hernádi.



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OTP shares fell sharply


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The OTP exchange rate is already well below 10,000 HUF.

OTP set a record by buying many of its own shares


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This year, they bought their own shares for HUF 61.17 billion.