Wednesday, Aug 12, 2015. 09:53

Report: Hungary, EBRD committed to acquire stakes in Erste

The Hungarian state and the European Bank for Reconstruction and Development (EBRD) are committed to acquiring minority stakes in Erste Bank Hungary by the end of this year, Hungarian daily Napi Gazdaság reported today.

Citing the Prime Minister’s Office and EBRD spokesman Anthony Williams, the paper reported that the acquisition is currently proceeding on schedule and has been agreed on by all parties involved.

The paper noted that the government plans to close the transaction in the coming months, however, no later than the end of this year.

Williams told the paper that the EBRD had expressed its concerns to the government over a top-up fund established to compensate investors who lost money in the Quaestor brokerage scandal. It is hoped that a solution will comply with the spirit of the agreement with the EBRD, he added. The top-up fund sourced by banks is being contested in court.

The European Bank for Reconstruction and Development (EBRD) and the Hungarian state were reportedly taking 15% ownership each in Erste Bank Hungary by increasing the capital of the bank in February.

The original deadline for acquiring the stakes was June 30.

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