EN   ECB -PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 28 October 2014  
on specific  settlement  rules for consumer loan agreements  
(CON/2014/ 76) 
 
Introduction and legal basis  
On 10 October  2014 , the European Central Bank (ECB) received a request from the Magyar Nemzeti 
Bank (MNB)  for an urgent opinion on a draft decree  laying down  specific rules on the methodology to be 
used for  the settlement of certain consumer loan agreements , stemming from a decision of the Supreme 
Court (hereinafter the ‘draft decree ’).  
The ECB’s comp etence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the sixth indent of Article 2(1) of Council Decision 98/415/EC1, 
as the draft decree  relates to rules applicable to financial ins titutions insofar as they materially influence 
the stability of financial institutions and markets. In accordance with the first sentence of Article 17.5 of 
the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion . 
 
1 Background and p urpose of the draft decree  
1.1 In 2014 , the Hungarian Supreme Court delivered a uniform  decision2 outlining the basic parameters  
of certain standard terms  that could be prescribed  by Parliament for inclusion in consumer loan 
contracts  entered into by natural persons and  denominated in forint or in foreign currency .  
1.2 The Hungarian Parliament subsequently adopted Law XXXVIII of 2014  on measures to address  
the Supreme Court’s decision on consumer loan contracts3 and Law X L of 2014 on t he rules of 
settlement  related to such contracts4. The ECB delivered opinions CON/2014/59 and CON/2014/72  
on these laws5. Law XL of 2014 authorise d the Governor of the MNB to adopt a decree prescribing 
relevant  detail s related to the settlement of certain consumer loan contracts . The draft decree has 
been prepared to this end by the MNB.   
1.3 The provisions of the draft decree includ e detail ed rules  on the implementation of the new 
obligations , the date on which such obligations should be performed  and, in certain limited cases , 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
2  Uniform D ecision 2/2014 of the  Supreme Court of 16 June 2014.   
3  Published in Magyar Közlöny  98/2014  on 18 July 2014 . 
4  Published in Magyar Közlöny  137/2014 on 6 October 2014.  
5  All ECB opinions are available on the ECB’s website at www.ecb.europa.eu.  
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2 the dates of the applicable  exchange rate s to be used  for the recalculation of the consumer loan 
contracts , as well as the date by which any financial obligations should be performed  in full . 
1.4 The draft d ecree applies to those  consumer loan contracts which have not been  affected by delay ed 
payment , and  to consumers who have not participated in any relief  schemes offered to them . It does 
not cover consumer loan contracts declared void  by a final and binding court order  prior to the draft 
decree taking effect.  
1.5 The draft decree offers three methods for the calculation of the amount either payable to each 
consumer or to be deducted from their overall liability under the consumer loan contract to which 
they are party . The financial i nstitutions may exercise their discretion as to which of the  calculation 
method detailed in the annexes to the draft decree they use , so that they may choose  the method 
that is compatible with their internal accounting system . The explanatory memorandum at tached to 
the draft decree  indicates that  these methods  are mathematically equivalent to each other  in the 
sense that each produce s the same result from the same set of figures .  
 
2. Observations  
2.1 As mentioned in the explanatory memorandum, the draft de cree does not lay down  rules for the 
implementation of Article 46(b), (c) and ( f) to ( h) of Law XL  of 2014 . The detailed rules relating to  
the following main issues will therefore  be laid down in a separate MNB decree:  (a) the methods 
available  to determin e both the calculation of benefits granted by financial institutions to 
consumers that are deductible from a consumer claim , and the formula  to be used ; (b) the detailed 
requirements for the content and format of the settlement  of each claim;  (c) in respec t of financial 
institutions subject to dissolution or liquidation proceedings, the assessment method  to be used to 
achieve settlement  of a claim;  and (d) the detailed requirements for the content and format for 
publication of  details of settlements of clai ms. The ECB expects to be consulted in a timely manner 
on future draft legislative provisions relating to these issues proposed by the Governor of the MNB , 
provided that they fall within the ECB’s scope of competence in accordance with Decision 
98/415/EC.  
2.2 On 29 July 2014, the MNB published guidance on the  best practice to be followed by  affected 
institutions as to the  methodology to be used when recalculating  a consumer’s payment obligations 
under a consumer loan contract . As t his guidance was not legal ly binding on  the affected 
institutions,  the adopti on of a decree on the subject matter provides for more legal certainty.  
2.3 In Opinion CON/2014/72 , the ECB welcome d that Law XL  authorised  the Governor of  the MNB 
to prescribe detailed rules pursuant to  the new legal measures  introduced by Law XXXVIII of 
2014 , since the MNB is both the national competent authority responsible for micro -prudential 
supervision and the macro -prudential supervisory authority in Hungary . It is the responsibility of 
the MNB to establish  the methods to be used for  recalculation, write -off and repayment following  a 
thorough assessment of the terms and conditions on which consumers enter ed into loan contracts , 
and the impact of the new legal measures on financial institutions , inclu ding an assessment of the 
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3 benchmarks with regard to  the methods  that could be used to determine the fairness of conditions 
set by credit institutions . This would ensure that  the suggested methods of calculation would 
meaningfully contribute to the effectiv e performance of the settlement obligation to which the 
financial institutions are subject.  
2.4 In previous opinions6, the ECB has stressed  that the measures taken following the decision of the 
Supreme Court will place a significant strain on the banking s ector . It has also comment ed, inter 
alia, on the need for meaningful dialogue between the Hungarian authorities and all relevant 
stakeholders, as well as the need for due consideration of the public  interest . The explanatory 
memorandum attached to the draf t decree does not contain any information about whether the 
MNB , when laying down the calculation methods,  has carried out a  thorough  impact assessment  
with the involvement of the affected financial institutions . The ECB recommend s that such an 
assessment is performed before the adoption of the draft decree in order to contribute to the 
prevention and mitigation of systemic risks to financial stability.  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 28 October  2014.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
6  Opinions CON/2014/59 and CON /2014/72.