Having agreed with BayernLB on the purchase of MKB bank, the Hungarian government is expected to decide today how to handle its newest financial asset. The German bank had been under pressure to sell its Hungarian operations in return for state aid that became necessary during the financial crisis. Among the options the government in Budapest claims to be considering is floating the bank the capital markets, however Viktor Orban seems intent on increasing the state’s control of the economy.
High bank taxes and a determination to punish banks in order to help out consumers locked into expensive, multi-year, foreign currency mortgage loans. Hungary’s economics minister Mihaly Varga denied speculation by the country’s central bank governor that up to four foreign banks could leave the country.
