Proceeds of MKB sale to go to Bailout Fund

Deals

The proceeds of an eventual sale of state-owned MKB Bank will go to the Bailout Fund, to save banksʼ and their clientsʼ money, the National Bank of Hungary (MNB) said today.

“The National Bank of Hungary trusts that MKB Bank – now with its portfolio cleared of bad assets – will successfully be sold at a price that is higher than the original purchase price. If this transpires, the state will benefit particularly from the transaction as the proceeds from the sale will go to the Bailout Fund, which is necessary to maintain financial stability and whose establishment was mandated by European Union rules,” the central bank said.

“The transaction will affect neither the central budget nor state debt. Thus the top-up of the Bailout Fund will not take place with money from banks or their clients,” it added.

Parliament established the Bailout Fund in 2014 to support the functioning of troubled financial institutions, giving them a “more advantageous alternative to insolvency”. The fund is supported with mandatory contributions by banks and investment companies. In its first calendar year of operation, contributions of HUF 2.5 bln were made to the fund.

The state acquired MKB from BayernLB in 2014 but the lender is expected to be re-privatized by the end of this year.

ADVERTISEMENT

Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

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.