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Court acquits former Postabank CEO

The Budapest Municipal Court on Tuesday acquitted former Postabank Rt chief executive Gábor Princz and six other officials of charges of fraud and mismanagement.

According to the charges, fraud and mismanagement caused the bank a total loss of €144 million. Princz was accused of being part of a coterie of seven executives responsible for mishandling Ft 34.6 billion in Postabank assets and personally being responsible fraud worth Ft 121 million. Princz, who left Postabank in the summer of 1998, was accused of making preferential financial offers, real estate deals and involving Postabank in a variety of sponsorship deals not within the usual banking sphere. After several steps of government support, Postabank was renationalized at the end of 1998, and the state spent Ft 150 billion on its consolidation. In September 2003, Postabank was finally sold to Erste Bank Zrt. The Tuesday decision of the court can be appealed.