The local council of the Hungarian city of Hódmezővásárhely has asked Erste Group Bank (EBS) AG’s Hungarian unit to share foreign-currency losses on the municipality’s Swiss-franc denominated bonds, state news service MTI said, citing a letter the city sent to the bank.
The municipality issued bonds worth 69.4 million Swiss francs ($74 million) in 2006 at an exchange rate of 173.4 forint per franc while the current rate is above 251 forint, MTI said, citing the letter signed by Mayor János Lázár, who is also the ruling Fidesz party’s parliamentary group leader.
The municipality is servicing its debt, however, it doesn’t acknowledge the entire amount of the outstanding debt, the letter said.
Source: MTI

Last Updated on Tuesday, 03 January 2012 08:50