Erste Group Bank AG

Government of Hungary and EBRD join forces - Seite 2

The MoU comes prior to the adoption of a new EBRD Country Strategy for Hungary, due later this year. The document will set the framework for the Bank's activities in the country in the next period in accordance with common operational priorities. The MoU notes that the EBRD strategy will "support the stabilisation and rebuilding of confidence, in line with the efforts of the Government of Hungary to improve the operating environment of the banking industry."

The EBRD envisages closer involvement in the financial sector in the coming years and is looking to use the shared understanding with the Government to develop projects to benefit the real economy.

Erste Group, which has demonstrated its long-term commitment to the Hungarian market, views these joint measures as an encouraging step towards a sustainable, efficient and resilient financial sector in Hungary.

With a view to stepping up its support for the Hungarian economy, Erste Bank Hungary will be introducing several programmes over a period of three years, as follows: * A Eur250 million loan disbursement programme, including a complete financial package for public sector employees * A Eur 100 million lending package for Energy Efficiency Programme * A Eur200 million loan facility to primary agricultural producers.

In line with the Erste Group strategy to focus on core Central and Eastern European markets and in order to support the implementation of the joint measures taken by the Government of Hungary and the EBRD, Erste has invited the two parties to invest in Erste Bank Hungary Zrt. by acquiring a minority stake of up to 15 per cent each. Negotiations are in progress and the completion of the transaction is expected within the next six months.

"Erste Group is one of the largest financial groups of Central and Eastern Europe and the leading retail bank in this region. With Hungary being one of our core markets, we have a strong interest in the success of the local economy and the Hungarian enterprises to have superior growth opportunities. Like in all other countries of our region this will require Hungary to get its fair share of FDIs to support the growth of the Hungarian industry and trade. By having both the Hungarian Government and the EBRD as our partners we want to clearly demonstrate, that our Group is committed to be a strong partner for the creation of wealth and prosperity for the Hungarian people in the years to come" said Andreas Treichl, CEO Erste Group.