Hungary banks can't afford losses from loan relief plan: Raiffeisen

MBH Jelzalogbank Nyrt

26/07/2013 14:06

BUDAPEST, July 26 (Reuters) - Banks in Hungary are in a critical state and cannot afford to take losses from a planned government scheme to provide relief to borrowers with foreign currency mortgages, the head of Raiffeisen's  RBIV.VI  Hungarian unit told Reuters. Heinz Wiedner, chief executive of Raiffeisen's Hungarian arm, said he was encouraged by signs the government was willing to engage in discussions with the banks, but said there was still uncertainty about what shape the relief would take. "There is ... no room on the banks' balance sheets any more after all these additional burdens that we are already taking," Wiedner said in an interview on Friday. "Just look at the banks' profitability in the sector, I mean clearly overall it is negative." "Like the state, also the banks actually are at a critical stage, and we are not able to suffer additional losses. So whatever solution we come up with has to be a solution which won't affect in any significant way either the state budget or the banks' profitability." (Reporting by Sandor Peto and Gergely Szakacs; Writing by Christian Lowe) ((christian.lowe@thomsonreuters.com)(+48 22 653 97 00)(Reuters Messaging: christian.lowe.thomsonreuters.com@reuters.net)) Keywords: HUNGARY LOANS/RAIFFEISEN