The annual general meetings of the commercial banks held at the end of April and in May have already confirmed the very complex picture regarding the development of the individual (groups of) banks in the business year 1994.

Once again, the joint venture banks (CIB, Citibank, UnicBank) which already benefit from several years of business experience in Hungary, turned out to be top of the class. Among these, in particular CIB Group has gained strength in the past business year.

CIB is also involved in the news of the latest general meeting of the Hungarian National Bank, namely that it is considered to sell the 34 % of the shares held by it in CIB by the end of 1997. The present co-owners may exercise a right of first refusal in relation to this block of shares.

The intended privatisation of OTP will be implemented step by step. The present ownership structure is as follows: 40,57 % hold by State Privatisation and Holding Company, 17,86 % by Ministry of Finance, 20 % by Social Security, 1,95 % by local governments, 16,81 % free float of stock, 2,81 % held by OTP itself. According to the new privatisation law, 25 % + 1 vote shall remain with the state in the long term. The remainder shall be sold at home and abroad, with a maximum of 5 % to be sold to one purchase. Last week, the sale began in Hungary at a rate of 120 %.

At present, Postbank tries to strengthen its equity position by issuing new shares, issue price: nominal value.

After having made several attempts in the last years, a Hungarian Eximbank and an Export Insurance Company commenced their business activities in May 1994. According to the provisions of the privatisation law, both enterprises shall completely remain in the hands of the Ministry of Finance.

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