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OTP Bank aims to take one-fifth of farm lending market

OTP Bank aims to boost its share of Hungaryʼs farm financing market to 20% by 2020, the deputy head of the lenderʼs agriculture directorate told journalists today, according to Hungarian news agency MTI.

(Photo: Jessica Fejos)

The bankʼs market share in the segment is targeted at 16-17% this year, said István Szabó. To achieve this target, outlays need to rise by 6-7%, he added.

About half of the HUF 61 billion in financing OTP Bank was awarded in phase III of the National Bank of Hungaryʼs Funding for Growth Scheme will go to borrowers in the farm sector, he said.

Tibor Csonka, who heads OTPʼs SME directorate, said the lender had been allotted HUF 100 bln in interest rate swaps linked to lending activity at a tender by the National Bank of Hungary last week. It committed to boosting lending by HUF 25 bln as a condition of the allotment, he added.

Overall allotment at the tender came to HUF 618 bln.