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Hungary's OTP bank receives EBRD credit
Hungary's OTP Bank (Orszagos Takarekpenztar es Kereskedelmi Bank Rt - the National Savings and Commercial Bank of Hungary) is to receive a 10-year US$ 50 million (ECU 40 million) subordinated loan from the European Bank for Reconstruction and Development (EBRD) as part of a capital development programme.
"As the largest bank in Hungary, with over 30 per cent of the country's banking assets, OTP plays an important role within the banking system and is a significant source of funding for the enterprise sector," said David Hexter, Deputy Vice President of the EBRD. "The project increases OTP's capacity as a financial intermediary and enables it to serve its corporate clients more effectively."
The principal objectives of the project are to enable OTP to expand its business activities, including its private sector loan portfolio, while meeting the prudential requirements of both the National Bank of Hungary and the Bank for International Settlements.
Originally founded in 1949, OTP was reorganised as a state-owned joint-stock company in 1990. In 1995 majority ownership passed to the private sector and the bank's shares are now quoted on the Budapest stock exchange.
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