State, EBRD set to acquire Erste Hungary stakes by end-Q2

History

The Hungarian state and the European Bank for Reconstruction and Development (EBRD) are making the final calculations for their acquisition of 15% stake in Erste Bank Hungary, the lenderʼs chairman-CEO told Hungarian news agency MTI today.

The transaction is expected to be closed by the end of June, after Parliament approves a further reduction of the bank levy in the 2017 budget act, which is a condition for the purchase of the stakes, said Radovan Jelasity. 

Hungaryʼs government and the EBRD agreed in February of 2015 to buy stakes up to 15% in the Hungarian unit of Austriaʼs Erste. At the same time, the government committed to reducing the bank levy and said it would consult with banks before taking any steps that could burden the sector further.

“Banks have been very hard hit by the various additional taxes on lenders in the past five years. I am proud of what we have accomplished at Erste, and I am proud, as well, that our owner, Austriaʼs Erste Group, stood by the Hungarian banking sector,” Jelasity said.

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