Regions

Hungary to divest stake in savings bank Takarekbank

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January 3
3:17 PM 2014

The Hungarian government plans to exit its majority interest in savings bank Takarekbank through an open and international tender. This is according to a government decree published by official gazette Magyar Kozlony, wrote Reuters.

Takarekbank is the umbrella group of the savings-bank sector of Hungary. The deadline for the issuing of tender for the bank stake is set on January 15, 2014. According to the said decree, the bid evaluation will be on March 15, the report detailed.

The Hungarian state holds more than 35% of Takarekbank through MFB, a state development bank. The state also has another 19.3% stake in the savings bank through the state-run Hungarian Post. The government said the stake would be sold after an overhaul of the banking sector, the report explained.

Prime Minister Viktor Orban has often stated that 50% of the banking industry should be in Hungarian ownership. Since a lending bubble burst in 2008, foreign-owned banks have been cutting their exposure, the report stated.

FHB Bank shares increased 8.5% on what analysts said was market speculation that the bank may bid for the Takarekbank stake, Reuters reported.

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