Erste closes deal with EBRD, Hungarian state

The local unit of Austrian banking group Erste closed a deal yesterday with the state of Hungary and the European Bank for Reconstruction and Development (EBRD) whereby each acquired 15% stakes in Erste, the Ministry for National Economy said today, according to Hungarian news agency MTI.

The parties first reached an agreement in February 2015, and then agreed in June 2016 that the state and EBRD would each pay HUF 38.9 billion for their stakes in the bank. According to the ministry, the state and EBRD have now paid the purchase price.

The ministry said that Erste Bank Hungary will remain under the management of the Erste Group as agreed earlier. The Hungarian state will delegate an outside member to Erste Bank Hungaryʼs board of directors and a member to the supervisory board.

Under the 2015 agreement, Hungaryʼs government also committed to reducing the scale of the bank levy, which it did in 2016 and will cut further in 2017. Banks can expect to save around HUF 80 bln because of the reduction.

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