OTP and several banks challenged the interest rate freeze maintained by the Tisza government at the Constitutional Court

OTP Bank and other financial institutions have challenged the constitutionality of a law maintaining a residential interest rate cap in Hungary. This cap, initially introduced during a state of emergency by the Orbán government, was later codified by the Tisza government. The banks argue that the law unjustly interferes with private contracts and lacks constitutional justification. They seek a ruling from the Constitutional Court to declare the law unconstitutional. The interest rate cap was intended to protect borrowers from rising market rates, but banks claim it is unsustainable and affects their operations. The government had previously extended the cap and aimed to find a long-term solution for vulnerable borrowers, but negotiations with banks have stalled, leaving many clients at risk of increased financial burdens.