Hungary has no plans to buy stakes in other banks -officials (updated)

MBH Jelzalogbank Nyrt

10/02/2015 10:53

* Government to keep minority Erste stake in long run 
    * Erste stake price seen in 10-20 billion forint range 
 
 (Adds detail) 
    BUDAPEST, Feb 10 (Reuters) - Hungary's government has no 
plans to buy stakes in other major banks active in the country, 
Economy Ministry officials said on Tuesday, after agreeing to 
buy a minority holding in Austrian Erste Bank's  ERST.VI  local 
business. 
    On Monday, Prime Minister Viktor Orban offered a truce to 
foreign banks, which his government has been squeezing for 
years, saying he would make their lives easier in exchange for 
them lending more to boost his country's economic recovery. 
    The officials told reporters that Hungary expected to pay in 
the range of 10 to 20 billion forints ($36.5 million to $73 
million) for an up to 15 percent stake in the Erste unit. 
    Erste has said it will launch three-year, 550 million euro 
lending programme in the central European country. 
    The officials said Hungary was hopeful that the main rating 
agencies, each of which rate the country's bonds below 
investment grade, will change their assessment of Hungary in 
light of the new deal with banks after years of acrimony. 
    As well as Erste, Hungary's top banks include home-grown OTP 
 OTPB.BU , Austria's Raiffeisen  RBIV.VI , Italy's Intesa 
SanPaolo  ISP.MI  and UniCredit  CRDI.MI  and Belgium's KBC 
 KBC.BR .  
    ($1 = 274.5200 forints) 
 
 (Reporting by Gergely Szakacs; Editing by Louise Heavens and 
John Stonestreet) 
 ((gergely.szakacs@thomsonreuters.com; +36 1 327 4748; Reuters 
Messaging: gergely.szakacs.thomsonreuters.com@reuters.net)) 
 
Keywords: HUNGARY BANKS/