How the Hungarian State-owned Banks were Privatised
AbstractHungary was the first transition economy to complete the process of privatisating state banks. This article outlines this process in the light of the economic and financial pressures after 1989, which had severely weakened the financial condition of these banks. It describes the ways in which bank balance sheets were consolidated by state-underwritten loan write-offs and injections of capital within a new legislative framework. The main privatisations are described in a set of mini-case studies. The process was effectively complete by end-1997. The EBRD was closely involved as adviser and investor, significant revenue was generated for the state (albeit much lower than the consolidation support required), foreign strategic investors were attracted and no major financial institution had to be liquidated. Despite the attendant controversy and scandal, the Hungarian experience offers useful lessons to other transition economies which have yet to seriously address this issue.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Post-Communist Economies.
Volume (Year): 13 (2001)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=102230
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.