February 9, 2015 / 3:52 PM / 3 years ago

Erste Bank to launch 3-yr, EUR 550 mln Hungary lending plan

BUDAPEST, Feb 9 (Reuters) - Austrian Erste Bank will launch a three-year, 550 million euro lending plan in Hungary after an agreement with the Hungarian government and the European Bank for Reconstruction and Development (EBRD), the EBRD said in a statement.

The announcement follows an agreement that Hungary and the EBRD would take minority stakes of up to 15 percent each in Erste's Hungarian unit. Budapest has pledged to cut its punitive bank tax and refrain from new measures hitting banks.

The EBRD said the purchase price would be negotiated after due diligence and the transaction was expected to close within the next six months.

Under the deal, Hungary pledged to "promote a stable and predictable framework to support macroeconomic stability." (Reporting by Gergely Szakacs)

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