Raiffeisen chief: Exit from Hungary not on agenda

Issues

The sale of the Raiffeisen group's Hungarian unit is currently not on the agenda, CEO of the subsidiary Heinz Wiedner was cited as saying today in Hungarian business daily Napi Gazdaság.

Although the unit was profitable in all business segments in H1, it still had to book losses due to the reserves it set aside to cover the compensation they are forced to pay by the recently approved borrower’s relief legislation, Wiedner was reported as saying.

"Our main goal remains to make our operations profitable again," Wiedner said. He added that this goal could be achieved by 2016, "if everything remains as it is".

He said the unit would review the possibility of appeal with regard to a recent court decision rejecting its defense of unilateral changes to contracts, adding that the bank could also turn to international legal forums.

Wiedner said he had no knowledge of bank levy rebates related to compensation paid under the borrowers' relief law.

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