Government issues $700 mln loan guarantee for Budapest Bank purchase
The Hungarian government has undertaken to provide a guarantee to a loan worth up to $700 mln, which is expected to finance the planned acquisition of Budapest Bank by the Hungarian state, a government resolution published in the official gazette Magyar Közlöny on Friday reveals.
The preliminary contract on the purchase of Budapest Bank from General Electric was signed on December 4. The loan is to be provided by state-owned Hungarian Development Bank (MFB) to its unit Corvinus Nemzetközi Befektetési to finance the acquisition, the government resolution revealed. According to Hungarian news agency MTI, Budapest Bank is Hungary's eight-biggest bank, it had consolidated net assets of HUF 154.1 bln and total assets of HUF 905.4 bln at the end of 2013. The bank closed the year with consolidated net profit of HUF 13.1 bln.
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