Raiffeisen Bank Won’t Be Leaving Hungary
- 15 Oct 2013 9:00 AM
The Austrian Raiffeisen Bank International (RBI) wants to stay in Hungary despite the government’s shocking rules against foreign banks in the country. According to the latest Emerging Markets interview with new RBI CEO Karl Sevelda, the bank has shrunk its Hungarian balance sheet by HUF300 million since June last year due to loss-making exchange rates and punishing new taxes, but has strong geographical and emotional connections to the country.
Hungary was where Raiffeisen first extended its operation, and as a neighbouring country, has numerous Austrian investors.
Sevelda’s statement appears to contradict previous RBI CEO Herbert Stepic’s opinion, that the bank would be better off leaving Hungary if only it could find a buyer.
While Sevelda also remains uncertain about the government’s plans, he is willing to stay for now. “The government has surprised us several times with new taxes and artificial exchange rates, which always had one thing in common: they all cost a lot of money”, he added.
Despite the bank’s withering performance in Hungary, it seems to have blossoming financial indicators in other countries of the region like Russia, Poland, Czech Republic, Slovakia, and Romania.
Source: ORIGO
By Tímea Klincsek
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