Austria's Erste Group raised risk provisions in Hungary from €180.0bn to €701.3bn in Q1-Q3 from the same period a year earlier because of an early repayment scheme as well as political uncertainty and the economic outlook, Erste said in its third-quarter report on Friday.

A €200m provision was set up to cover expected losses resulting from the repayment scheme, which allows full early repayment of forex mortgages at a discounted exchanged rate, Erste said. A further €250m in provisions were made "in view of the economic outlook and the uncertain political climate in Hungary", it added.