OTP Bank Falls for First Time in Three Days as Hungary Defies EU

OTP Bank Nyrt. (OTP), Hungary’s biggest lender, fell for the first time in three days as the government failed to allay all the European Central Bank’s concerns in a dispute that’s holding up talks about a bailout deal.

The shares declined 1.8 percent to 3,460 forint by 10:39 a.m. in Budapest. The benchmark BUX stock index dropped 0.3 percent to 17,547.71.

The Economy Ministry submitted amendments to the central bank law to parliament late yesterday. The government said they didn’t remove all the issues blocking the start of bailout talks, five months after Prime Minister Viktor Orban requested aid from the International Monetary Fund and the European Union.

“The central bank situation remains a point of conflict for the EU/IMF talks, so foreign investors may again regard this as a delaying tactic,” Akos Kuti, an analyst at Budapest-based broker Equilor Befektetesi Zrt., and colleagues wrote in a research report today.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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