Are you sure?

€2.1 billion disbursed from IMF loan to banks in Q2

Loans of around €2.1 billion were disbursed to Hungarian banks during the second quarter of the year from the IMF loan approved for Hungary last autumn, the latest quarterly report by Hungary’s central bank MNB said.

All the loans approved by the government were to be drawn in two installments, and were disbursed by the end of June, with the exception of the second installment of a HUF 170 billion (close to €600 million) loan to state-owned development bank MFB, according to Econews information. MFB requested to receive its second installment only by the end of 2009.

The government has approved to grant loans of a combined €2.4 billion from the international loan package to four Hungarian banks without foreign parents - OTP Bank, FHB, and state-owned MFB and, through MFB, to its subsidiary Eximbank to back their lending activities in the global liquidity squeeze, according to earlier information. The government approved at the end of March the granting of a €1.4 billion loan to OTP Bank and a €400 million loan to FHB Bank at market rates and expiring in November 2012 as well as a loan of HUF 170 billion (close to €600 million) to MFB in the middle of April. Eximbank announced in May it will take out a €142 million, most of it from the IMF loan through cooperation with its parent bank MFB. Last autumn, the IMF, the European Union and the World Bank approved a combined €20 billion in loans for Hungary to help the country withstand the effects of the global financial crisis. (MTI-Econews)