As Minister for National Economy Mihály Varga stated at a press conference following a Government session where the preliminary agreement on the purchasing of MKB has been discussed Cabinet members concluded that the accord reached by the parties is favourable for the country. MNB President György Matolcsy was also present at the meeting, he added, as the National Bank of Hungary prepared the asset valuation that served as the basis for the preliminary agreement.

The Minister pointed out that the state of Hungary is to purchase MKB for EUR 55 million, while the seller agreed to increase capital by EUR 270 -- an amount far above the purchasing price. Mihály Varga also revealed that the Cabinet entrusted the Minister of National Development with concluding the contract with the former owner, Bayerische Landesbank, until 31 July.

The Minister stressed that the financial crisis has made it clear how important it is to increase Hungarian ownership within the financial sector. Through obtaining MKB, the share of Hungarian-owned banks within the sector increases to more than 50 percent and thus lending can be boosted in a safer way.

(Ministry for National Economy)