MNB: Restructuring of MKB Bank on schedule
The restructuring of MKB Bank that began nine months ago, is progressing according to plans, with the bank continuously divesting itself of its bad portfolio elements, the National Bank of Hungary (MNB) told state news agency MTI yesterday.
It is of key importance to sell as much of the portfolio as possible that will be split off from the bank on the market, the MNB said. In order to achieve this, the MNB and MKB have made and will continue to make joint efforts – occasionally with the involvement of external consultants, according to MNB.
First, an attempt to sell the portfolio in larger batches proved unsuccessful. Subsequently, the MNB attempted to sell assets in a targeted way – maintaining the targeted price. In the first such transaction, an asset portfolio comprising seven syndicated, foreign and Hungarian property financing transactions was sold. This was announced in statements published by the MNB as well as by the Hungarian and foreign parties concerned. Several similar sales transactions are approaching their closing phase.
MKB Bank said it will transfer any portfolio elements to be split off that cannot be sold on the market to an asset manager to be established in the near future. During this process, the price to be paid by the asset manager is not allowed to exceed the actual economic value of the transferred assets due to the relevant European Union regulation.
The MNB will hold consultations during the procedure, not only with the competent authorities of the European Union but with the affected Hungarian institutions as well, and will provide information on the transaction.
The board of MKB Bank took over management of the lender in July after a bailout commissioner was recalled. The state of Hungary acquired MKB Bank last year from BayernLB and gave the MNB ownership rights.
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