Bloomberg News

OTP Bank Heads for Second Weekly Rout on Hungary Transaction Tax

May 11, 2012

OTP Bank Nyrt. (OTP) shares slid, set for a second week of declines on concern Hungary’s planned financial- transaction tax will hurt lending and as JPMorgan Chase & Co. reported a $2 billion trading loss.

OTP, Hungary’s largest bank, fell 1 percent to 3,632 forint as of 9:52 a.m. in Budapest, poised for a 3.3 percent five-day retreat. The BUX (BUX) index of 11 companies, in which OTP Bank has a 28 percent weighting, slumped 0.2 percent today.

Hungarian banks want to renegotiate the 0.1 percent tax on financial transfers proposed by Prime Minister Viktor Orban’s administration, Daniel Gyuris, deputy head of the country’s Banking Association and deputy chief executive officer at OTP Bank, said yesterday. The plan was “unexpected” and threatened to curb lending and economic growth, he said.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net

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


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