Erste seeks resolution in dispute over brokerage compensation

History

Austrian lender Erste Group is hoping to reach an amicable resolution in the dispute with the Hungarian government regarding compensation for failed brokerage Quaestor, Erste’s Chief Executive Andreas Treichl said yesterday, Hungarian news agency MTI reported. 

Hungaryʼs ruling Fidesz party has forced banks to finance the compensation of clients of Quaestor, a brokerage which collapsed in March.

Treichl said the governmentʼs handling of the case violated an agreement struck in February with the European Bank for Reconstruction and Development (EBRD) on taking a combined stake of up to 30% in Ersteʼs local unit.

"To our knowledge this has been communicated by the EBRD to the Hungarian government, therefore I believe that this matter will be solved somewhat amicably during the next few months."

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