OTP Drops in Longest Losing Streak in 11 Months

Bloomberg said, OTP Bank Nyrt., Hungary’s largest lender, fell for a sixth day as the government proposed a plan that allows customers to withdraw a limited amount of cash without paying a transaction tax, forcing banks to take the hit.

The stock slid 1.1 percent to 4,189 forint by 2:08 p.m. in Budapest, extending declines to the longest stretch of losses since November. About 520,000 shares changed hands, or 45 percent of the three-month daily average. The benchmark BUX index (BUX), in which OTP has the second-biggest weighting at 29.4 percent, slipped 0.5 percent.

Bloomeberg according, lawmakers from Hungary’s ruling Fidesz party have suggested banks offer two free cash withdrawals in a month, making lenders swallow a 0.6 percent tax that would still be payable to the government. The step will further burden the banks that already pay the highest industry levy in the European Union.

Source: Bloomberg