State, EBRD buy 15% stakes in Erste Bank Hungary
The Hungarian state and the European Bank for Reconstruction and Development (EBRD) today finalized the acquisition of 15% stakes each in the local unit of Austrian banking group Erste, as per an agreement made in February 2015, Hungarian news agency MTI reported. Hungary reportedly paid HUF 38.9 billion for its 15% stake.
Hungary acquired its stake in Erste Hungary through a firm called Corvinus Zrt., National Economy Minister Mihály Varga said, according to MTI. The minister said the purchase price was determined by independent experts and a market evaluation.
When the deal was first announced more than a year ago, it was said to be contingent on the Hungarian governmentʼs promise to reduce the extraordinary bank levy.
“If there is a change in the framework for the financial sector, we will invite both parties to invest in our local entity,” Erste Group spokesperson Michael Mauritz said when the deal was first mentioned last year.
Hungary cut the bank levy this year, and will cut it further in next yearʼs budget package. Varga said banks will save HUF 80 bln because of the reductions the government made in in the bank levy.
The board of directors of EBRD approved the purchase of a 15% stake in Erste Bank Hungary in May.
The purchase today was in line with predictions saying that the deal could be wound up by the end of the second quarter.
MNB Gauges Interest in Operating on Hungary Crypto-assets Ma...
Bulgaria's Household Income, Spending Rise 20% in 2023
Budapest Airport Building on ‘Strong Employer Brand’ and ‘Vi...
Silvanus Hotel Under Reconstruction, Will Reopen in Fall
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
