Equity
Hungary OTP Bank clears state loan in full
According to the original terms, OTP Bank had to start the repayment from February 2011 in eight equal tranches, but it prepaid the first half already in November 2009.
At the time of the Agreement it was the peak of the financial crisis and both the Ministry of Finance and OTP Bank set an aim of providing access funding sources for the Hungarian corporate sector.
However, due to the conditions of the loan facility, namely the interest rate level and maturity, OTP could satisfy the demand of only a limited circle of entrepreneurs, thus it decided to support a wider range of potential client interest at the expense of its own liquidity, exceeding EUR 6 billion, the bank said in a statement on the website of the Budapest Stock Exchange (BSE).
During 2009 OTP originated HUF 248 billion to the Hungarian small, medium and large enterprises, as a result its FX-adjusted loan portfolio to the SME sector grew by 5%, and by 8% to the medium and large enterprise sector, respectively.
“OTP’s commitment towards the Hungarian corporate sector is well demonstrated by and additional HUF 34 billion loan disbursement YTD and despite the prepayment of the State Loan facility the Bank will further increase its exposure to the sector," it added.
At the time of the Agreement it was the peak of the financial crisis and both the Ministry of Finance and OTP Bank set an aim of providing access funding sources for the Hungarian corporate sector.
However, due to the conditions of the loan facility, namely the interest rate level and maturity, OTP could satisfy the demand of only a limited circle of entrepreneurs, thus it decided to support a wider range of potential client interest at the expense of its own liquidity, exceeding EUR 6 billion, the bank said in a statement on the website of the Budapest Stock Exchange (BSE).
During 2009 OTP originated HUF 248 billion to the Hungarian small, medium and large enterprises, as a result its FX-adjusted loan portfolio to the SME sector grew by 5%, and by 8% to the medium and large enterprise sector, respectively.
“OTP’s commitment towards the Hungarian corporate sector is well demonstrated by and additional HUF 34 billion loan disbursement YTD and despite the prepayment of the State Loan facility the Bank will further increase its exposure to the sector," it added.
