Hungary reportedly sells MKB Bank

By bne IntelliNews March 29, 2016

Hungary has sold a controlling stake in MKB Bank, local press claimed on March 29. However, the new owner of the country's fourth largest lender will not be revealed until the summer.

Hungary accepted a binding bid for the lender last week, Portfolio.hu reports, citing unnamed sources, and MKB Bank has now changed hands. The list of potential bidders for MKB, which was bought by the state and put under the management of the Magyar Nemzeti Bank (MNB) in 2014, dropped from five to just two last week, Vilaggazdasag reported. The final list consisted of two private equity funds, according to the newspaper.

However, speculation has risen that the MNB itself may have bought MKB via six non-profits, using foreign private equity funds as cover. Both MNB Deputy Governor Marton Nagy, and the foundations set up by the central bank, rejected the claims to vg.hu.

The government bought MKB from Germany's BayernLB for €55mn, claiming it would reprivatise the bank soon. The European Commission gave the go-ahead for the Hungarian government to provide aid for the restructuring of the bank in December. According to that deal, MKB must be listed by the end of 2019; the MNB has said it wants to offload a majority stake by this June.

Related Articles

Bulgaria’s FIBank denies links to Yulen, risk of collapse

Bulgaria’s FIBank on June 15 denied claims by opposition Democratic Bulgaria and investigative news outlet Bivol.bg about links between one of its shareholders – Tseko Minev – and the ... more

EBRD invests in Port of Tallinn to support IPO

The European Bank for Reconstruction and Development (EBRD) has acquired a 3.6% stake in the Estonian infrastructure company AS Tallinna Sadam, the manager of the port of Tallinn, supporting the ... more

ECB holds a meeting in Riga without Latvian central bank governor

The European Central Bank governing council met in the Latvian capital Riga on June 14 with the host, the beleaguered governor of Latvijas Banka Ilmars Rimsevics, not attending. Rimsevics ... more

Dismiss