Bloomberg News

OTP Bank Snaps Three-Day Rally After Spain Downgraded by S&P

April 27, 2012

OTP Bank Nyrt. (OTP), Hungary’s largest lender, fell for the first time in four days after Standard & Poor’s cut Spain’s sovereign credit rating, adding to concern that the debt crisis will worsen as Hungary works to obtain aid.

The shares dropped 1 percent to 3,803 forint by 10:01 a.m. in Budapest. The stock jumped 14 percent in the previous three days as Hungary received approval from the European Commission to start bailout negotiations after five months of disputes on laws threatening the independence of the central bank and other institutions.

The International Monetary Fund is ready to start negotiations with Hungary “as soon as adequate steps are taken to ensure central bank independence,” the Washington-based lender said in a statement late yesterday.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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