ADVERTISEMENT

Intesa Sanpaolo to increase capital HUF 15.4 bln

Telco

Italian Intesa Sanpaolo, the parent bank of Hungarian CIB Bank, is raising capital at its Hungarian unit, by HUF 15.4 bln, the local lender said on the website of the Budapest Stock Exchange on Wednesday.

The raise will take place with the subscription of a single share with nominal value of HUF 1. CIB Bank said last week it had decided to set aside provisions of HUF 20 bln for the first half of 2014 in connection with recently approved legislation that retroactively voids the use of exchange rate margins for foreign currency-denominated loans.

The legislation requires banks to compensate retail borrowers for using exchange rate margins and for making unilateral changes to contracts. CIB Bank said at the time that it would defend the unilateral changes it made to contracts in court. Compensation that could be paid to clients because of this part of the law were "not known at present", the lender added.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.