OTP to launch HUF 100 bln investment loan program
Hungary's OTP Bank said Wednesday it will offer investment loans to corporate clients under a HUF 100 billion loan program, aimed at providing finance to projects planned to be funded from EU monies won at tenders.
The banking system has enough liquidity to finance the economy as external funding has fallen but the loan-to-deposit ratio improved, OTP deputy CEO László Wolf told reporters. He noted that CDS prices will automatically improve with an agreement with the IMF.
Wolf said that the current macroeconomic environment disfavored growth and OTP Bank projected investments to drop 2% this year.
The lack of confidence is a main obstacle to growth, he said, and regaining it is essential as it could boost investments and lending. The signing of an agreement with the IMF will improve investors' confidence, he said.
The ratio of non-performing loans is still rising in the corporate sector, and net borrowing is still declining, he said, adding that OTP Bank expects corporate lending to start to grow again next year.
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