Hungarian OTP, Erste, K+H and Raiffeisen banks submitted constitutional complaint due to government decision
The Hungarian Banking Association on Thursday said a number of its members had submitted another constitutional complaint on a mandatory interest rate cap in place since 2021 by government decree.
The complaint submitted to the Constitutional Court is closely related to another one lenders submitted on May 30, 2025, thus the two procedure will be consolidated.
In a statement, the association said the rate cap was “concerning from an economic, legal and ethical perspective”, especially after lenders had repeatedly offered to fix the rates of clients with floating-rate loans. It added that the measure had been extended even though the state of emergency related to the pandemic had ended. The measure was extend again, for the seventh time, on June 30, until the end of 2025, in spite of lower interest rates, it added.
The amended decree “retroactively, unnecessarily, and disproportionately interferes with private law relationships without constitutional justification”, the association said.
The constitutional complaint was submitted by OTP Bank, OTP Mortgage Bank, Erste Bank Hungary, K+H Bank and Raiffeisen Bank.
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