Hungarian Development Bank MFB In Talks On Takarekbank Takeover -Report
May 03 2012 - 4:57AM
Dow Jones News
Hungary's state-owned development bank MFB Zrt. is in talks with
German shareholder DZ Bank AG regarding the takeover of
Takarekbank, MFB Chief Executive Laszlo Baranyay told Hungarian
weekly Heti Valasz in an interview published Thursday.
The Hungarian government is looking for ways to enhance lending
in order to kick-start growth in the ailing economy. Hungarian
banks, mostly foreign-owned, have been under deleveraging pressure
amid severe losses imposed by a government scheme to reduce the
stock of household foreign currency mortgages and a hefty tax on
the financial sector.
"It is not the MFB group's job to move instead of commercial
banks. But there are times when--for a transitionary period--we
need to take their place," Baranyay said.
Baranyay said negotiations with Takarekbank's owners would yield
an outcome soon and no further acquisitions were planned for the
time being.
Takarekbank is a savings cooperative, with DZ Bank owning 37% of
its shares. The remaining ownership is divided among member
institutions.
The development bank's plans are in line with the government aim
to raise ownership in strategic companies. The cabinet has closed
transactions on raising its stake in Hungarian oil company MOL
Nyrt.(MOL.BU) and the takeover of automotive manufacturer Raba
Nyrt. (RABA.BU).
Newspaper website: www.hetivalasz.hu
-Budapest Bureau, Dow Jones Newswires; +361-267-0622
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