Government earmarks HUF 15 bn for acquiring Erste stake

Budapest, April 14 (MTI) – The government has earmarked 15 billion forints (EUR 50.6m) for acquiring a 15 percent stake in the Hungarian unit of Erste Bank, an opinion issued on modifications to the 2015 budget by the Fiscal Council on Tuesday shows.

A statement issued on the council’s website shows that an increase in spending will enable the state to acquire a 15 percent stake in Erste Bank in cooperation with the European Bank for Reconstruction and Development (EBRD). In line with European accounting rules, the acquisition will not affect the deficit, it added.

According to the amendment, the move will increase central spending by 61 billion forints and central revenues by 46 billion forints.

Hungary’s government and the EBRD both agreed earlier in February to buy stakes up to 15 percent apiece in the Hungarian unit of Austria’s Erste Group. The government also announced a reduction in the bank levy.

Photo: www.egerhirek.hu – Michaela Bruckberger

Source: http://mtva.hu/hu/hungary-matters