4 November 2011 – statement re Hungarian legislation

Draft legislation re the cap on interest rates has now been published which would set a cap on the maximum APR on consumer loans at 24% above base rate, which is currently 6%.  The impact on IPR’s business is not yet clear and will only apply to loans issued on or after 1 January 2012.  The group has always managed to get round issues like this in the past by reducimg the interest rate on loans but increasing ‘administration and other charges’.  The shares have fallen back as a result and they are back in buying territory again.  LONG TERM BUY.