Economy
Hungary seen eyeing local Sberbank arm, c.bank chief Matolcsy against plan
The paper has learned that the central bank has been left out of the loop in many cases when the state acquired banks lately, including when the government sign agreements with Erste and the European Bank for Reconstruction and Development (EBRD). Although the MFB has already started due diligence at Sberbank, it seems that MNB chief Matolcsy could have the final say in this matter and he is allegedly opposing the deal, which could put a crimp in the state’s acquisition plans.
Background
There were reports in early February that after the acquisition of MKB Bank and Budapest Bank the Hungarian state was eying Sberbank, the local unit of Russia’s largest bank.
There were reports that the parent company was unable to provide the necessary capital for its Hungarian arm due to economic sanctions imposed on Russia in relation to its conflict with Ukraine.
Later Sberbank issued a statement denying that press report.
The guessing game then started who could buy the local Sberbank unit that not only closed 2013 with HUF 7.7 bn loss but was also negatively affected by the assistance package devised for foreign currency loan holders. It was reported that financial service unit Co-op Hitel Pénzügyi Szolgáltató Zrt. would enter the race for Sberbank Hungary which has since been denied by both the bank and Co-op Hitel.
In early March, Russian news portal delovoysaratov.ru reported that Sberbank would approve a plan in April on the specific reduction of its support for its foreign subsidiaries, and it would announce in July which foreign units it would sell.
Sberbank has operations in Bosnia and Herzegovina, Croatia, the Czech Republic, Germany, Hungary, Serbia, Slovakia, Slovenia and Ukraine.
Czech daily newspaper Lidové Noviny (LN) reported on 23 February that "the new conflict between the West and the Kremlin is forcing the largest bank in Russia to sell its interests in central Europe. We have learned from a few well-informed sources that it plans to sell its Hungarian and Slovakian subsidiaries."
According to the paper, the Slovakian unit would be sold for over EUR 2 bn and the Hungarian arm is to go up for sale for around EUR 1.6 bn.
To LN’s knowledge, there are already several potential bidders lining up for the Slovakian Sberbank unit, including Hungary’s OTP Bank that is already present on that market, and the Czech-Slovakian arm of Italy’s UniCredit, as well as Czech-Slovak Penta financial group.
There have been contradictory reports about the Hungarian state’s intention regarding Sberbank but if the MFB has indeed started due diligence at the bank it gets confirmation that the state is seriously considering acquiring the local arm of the Russian bank. The question is what the state will do if the central bank and Matolcsy do not stand behind the plan.
Background
There were reports in early February that after the acquisition of MKB Bank and Budapest Bank the Hungarian state was eying Sberbank, the local unit of Russia’s largest bank.
There were reports that the parent company was unable to provide the necessary capital for its Hungarian arm due to economic sanctions imposed on Russia in relation to its conflict with Ukraine.
Later Sberbank issued a statement denying that press report.
The guessing game then started who could buy the local Sberbank unit that not only closed 2013 with HUF 7.7 bn loss but was also negatively affected by the assistance package devised for foreign currency loan holders. It was reported that financial service unit Co-op Hitel Pénzügyi Szolgáltató Zrt. would enter the race for Sberbank Hungary which has since been denied by both the bank and Co-op Hitel.
In early March, Russian news portal delovoysaratov.ru reported that Sberbank would approve a plan in April on the specific reduction of its support for its foreign subsidiaries, and it would announce in July which foreign units it would sell.
Sberbank has operations in Bosnia and Herzegovina, Croatia, the Czech Republic, Germany, Hungary, Serbia, Slovakia, Slovenia and Ukraine.
Czech daily newspaper Lidové Noviny (LN) reported on 23 February that "the new conflict between the West and the Kremlin is forcing the largest bank in Russia to sell its interests in central Europe. We have learned from a few well-informed sources that it plans to sell its Hungarian and Slovakian subsidiaries."
According to the paper, the Slovakian unit would be sold for over EUR 2 bn and the Hungarian arm is to go up for sale for around EUR 1.6 bn.
To LN’s knowledge, there are already several potential bidders lining up for the Slovakian Sberbank unit, including Hungary’s OTP Bank that is already present on that market, and the Czech-Slovakian arm of Italy’s UniCredit, as well as Czech-Slovak Penta financial group.
There have been contradictory reports about the Hungarian state’s intention regarding Sberbank but if the MFB has indeed started due diligence at the bank it gets confirmation that the state is seriously considering acquiring the local arm of the Russian bank. The question is what the state will do if the central bank and Matolcsy do not stand behind the plan.
