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More than 30% of senior positions cut at MKB Bank

Initiatives

The restructuring of MKB Bank by the National Bank of Hungary (MNB) will continue with the elimination of 35 senior positions, the equivalent of a 30% cut in staff, MKB said in a statement on Friday, according to news agency MTI. 

The state acquired MKB from BayernLB for €55 mln after a €270 mln capital raise by the seller in September 2014. In December, MNB took over the exercise of ownership rights over the bank, providing it with a safety net, cleaning up its portfolio and managing it for a period of up to one year, citing bank bailout legislation passed last summer. The reorganization program, which involves the bankʼs units as well, will carry on as planned, the statement added.

MKB noted that, for the first step in the restructuring process, the MNB sold its stakes in its general and life insurance units, leaving the bank with a 1% stake in both. Simultaneously, it established a separate, independent company, called MKB Pénzügyi, to manage MKBʼs bad assets, the statement said. It also cut its car fleet by more than 30%, saving several hundreds of million forints annually, the statement said.

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