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OTPIY OTP Bank Ltd (PK)

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Last Updated: 19:04:22
Delayed by 15 minutes
Share Name Share Symbol Market Type
OTP Bank Ltd (PK) USOTC:OTPIY OTCMarkets Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 24.23 25.98 0.00 19:04:22

Hungary's Large Banks Welcome Central Bank's Growth Plan

08/04/2013 1:27pm

Dow Jones News


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By Margit Feher

BUDAPEST--Most of Hungary's largest retail banks welcomed Monday the plan announced by the central bank last week to promote growth by boosting lending to small and medium-sized enterprises, the National Bank of Hungary said.

Top executives from various retail banks and the leadership of the central bank agreed at a meeting Monday to hold regular sessions in the future to iron out the details of the central bank's growth program, the central bank said in a statement.

Business breakfasts would become regular between the top executives of the retail banks and central bank, the participants also agreed, the central bank added.

The list of banks and executives present at Monday's meeting issued by the central bank showed that Hungary's second-largest bank, Erste Bank Zrt., and fourth-largest bank, MKB Zrt., weren't present. Erste is a unit of Erste Group Bank AG (EBS.VI) of Austria, and MKB is a unit of Germany's Bayerische Landesbank AG.

The central bank declined to comment.

It said it wishes to continue its talks with retail banks about its "Funding for Growth" program, which it planned to base on the Bank of England's "Funding for Lending" program.

It also plans to consult next with specialized financial institutions and savings cooperatives, it said.

Under its growth plan, the central bank plans to offer zero-interest funds, equivalent to less than 1% of gross domestic product, to boost lending to SMEs, while using less than 10% of the country's foreign-currency reserves to help SMEs and retail banks.

The central bank predicts that the measures could boost economic growth by about 0.3 percentage point this year. Retail banks would channel the zero-interest funds to firms, but wouldn't be allowed to charge more than 2% interest on the central bank funds. As part of the program, they would also participate in converting the SMEs' foreign-exchange loans into forints.

Top executives present at Monday's meeting represented the following banks: OTP Bank Nyrt. (OTP.BU); OTP Mortgage Bank Zrt., a unit of ; UniCredit Bank Hungary Zrt.OTP Bank, a unit of UniCredit SpA (UCG.MI); K&H Bank Zrt., a unit of KBC Bank (KBC.BT) of Belgium; Hungarian mortgage bank FHB Mortgage Bank Nyrt. (FHB.BU); CIB Bank Zrt., a unit of Italian banking group Intesa Sanpaolo SpA (ISP.MI); Hungarian state-owned development bank MFB Zrt.; Raiffeisen Bank Zrt., a unit of Raiffeisen Bank International AG (RBI.VI) of Austria; and Budapest Bank Zrt., a unit of U.S. banking group GE Money Bank.

--Veronika Gulyas contributed to this article.

Write to Margit Feher at margit.feher@dowjones.com

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