Press releases

On 23 July 2018, the Resolution Fund of Hungary repaid all of its debt far before the maturity as a result of the successful resolution of the MKB Bank as well as the great economic performance of its subsidiary, MSZVK Magyar Szanálási Vagyonkezelő Zrt. (the Hungarian resolution asset management vehicle). The loan that financed the resolution of the MKB Bank had 10 years of original maturity (ending in 2025) and its volume was 45,5 billion HUF and 166,9 million EUR. It was a syndicated loan taken from local credit institutions.

The Resolution Fund, established in 2014, contributed to the reorganization aimed at increasing the market value of MKB Bank with two operations: with the establishment of Magyar Szanálási Vagyonkezelő Zrt., which purchases the bad portfolio of MKB Bank and currently exercises ownership over the bank, and with the organization of a large, syndicated loan to help buy the bad portfolio.

With the establishment of MSZVK Magyar Szanálási Vagyonkezelő Zrt. (MSZVK Zrt.), the domestic institutional framework of financial stability has been expanded with a new element.

On the basis of Act XXXVII of 2014 on the Further Development of the Institutional System Enhancing the Security of Certain Participants of the Financial Intermediation System, which has recently entered into force, the Board of Directors of the Resolution Fund (Hungary) held its inaugural meeting. The fund is to be replenished by credit institutions and investment firms, that is, the main objective of the fund is that the situation of troubled institutions be financed by the players of the sector themselves, instead of taxpayers.