OTP Bank Falls Second Day on IMF’s European Bank Asset Warning
The shares fell 0.2 percent to 4,070 forint by 11:18 a.m. in Budapest. The benchmark BUX stock index was little changed at 18,866.21.
The IMF said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis. The projection is 18 percent higher than its April estimate. The IMF made the comments in its Global Financial Stability Report released today.
“Hardly inspiring news for Emerging Europe as it struggles with the already weak European growth environment,” Timothy Ash, a London-based economist at Standard Bank Group Ltd., wrote in e-mailed comments today. “Maybe this will inspire a fresh round of concern over European bank deleveraging across the region.”
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