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Hungarian Development Bank got €500 mln bridging loan in Q1

The National Development Ministry has granted a €500 million bridging loan to the Hungarian Development Bank (MFB), which was the main reason for a sharp rise in foreign currency payments of budget institutions in the first quarter, the National Economy Ministry's press department said when asked by Econews.

The source of the six-month loan, on which MFB is paying market rates, was the foreign currency deposits of the National Bank of Hungary, the press department said.

The €500 million loan was designed to cover repayment of a €500 million five-year bond issued by the bank maturing in March, MFB's annual report for 2010 shows.

The bridging loan could also be related to a statement by MFB's spokesman late Monday confirming a series of presentations to investors the bank plans next week.

MFB plans to get €1.1bn-1.2 billion in external financing from international development institutions and global money and capital markets this year, spokesman Janos Nyiri told MTI. MFB will present its activities to global institutional investors in Vienna, London, Amsterdam, The Hague, Frankfurt, Munich, Geneva and Zurich between May 16 and 20, he said. The meetings are being organized by BNPP, ING and SG CIB, he added.

MFB had net losses of HUF 19.6 billion last year after breaking even in 2009 according to Hungarian accounting standards, the annual report on the bank's website shows.