OTP Bank Nyrt. (OTP), Hungary’s largest lender, fell as European stocks declined and talks on a bailout for the country from the European Union and International Monetary Fund faced delays.
The shares dropped 1.1 percent to 3,997 forint by the close in Budapest. The benchmark BUX stock index slipped 1.1 percent to 19,168.46 and the Stoxx Europe 600 Index retreated 0.6 percent.
Hungary didn’t receive any indication of dates in meetings preparing bailout negotiations, central bank President Andras Simor said in an interview with news website Origo published late yesterday. A European Commission plan to cut Hungary’s development subsidies is “credit negative” and “complicates” talks on an International Monetary Fund-led loan, Moody’s Investors Service said in an e-mailed report today.
“The negotiations and implementation of the programme in our view will prove challenging,” Michael Harris, a London- based equity strategist at Bank of America Corp., and colleagues wrote in a research report today. The bank named Poland as its new top equities pick in the region instead of Hungary, according to the report, adding that OTP is a “market proxy” for Hungary.
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