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Hungarian private investors invest HUF 6.2 billion in Lehman Brothers bonds

Hungarian private investors invested HUF 6.2 billion into Lehman Brothers structured bonds between June 2004 and May 2008, business weekly HVG reported in its fresh issue published Thursday.

There is a court procedure underway against the bank at the Budapest Municipal Court, started by a private investor asking that the court should declare his contract to purchase Lehman bonds invalid. HVG also reported in December last year that another group of Hungarian Lehman bond holders are to file a lawsuit against Citibank.

Citibank Magyarország has made a settlement offer to all its clients holding Lehman Brothers structured bonds, the credit institution announced on Wednesday.

Citibank offers the opportunity to all of its clients concerned to buys back their Lehman Brothers bonds under identical terms, at 55% of the original face value, with prompt cash payment.

The offer will be valid until May 21, 2010, and concerns all Citibank Magyarország clients who purchased their Lehman Brothers bonds through Citibank Magyarország.

Citibank stressed that it has made the settlement offer on a goodwill basis and continues to reject any claims of unlawful activity or legal obligations on the part of the bank.

Small investors have been offered compensation in several countries by financial institutions distributing Lehman bonds. (MTI-ECONEWS)