OTP Bank purchases remaining 25% of home leasing company

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OTP Bank Nyrt, eastern Europe's largest lender by market value, said it bought the 25% stake it didn't already own in a Hungarian home leasing company. Budapest-based OTP bought the stake from SCD Group for an undisclosed price and will rename it OTP Lakáslízing Zrt, the Hungarian lender said in a statement on the Budapest Stock Exchange Web site yesterday. OTP initially bought 75% of the company for Ft 210 million ($949 million) in November last year. Home loans drove OTP's profit from 2002 through 2004 as the government subsidized mortgages. Competition for loans has since increased because many consumers already took out home loans and the government began reducing subsidies to cut its budget deficit. (Bloomberg)

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