Press Release: State aid: Commission requests Hungary to end indemnity in favour of Postabank’s buyer, Erste Bank

The European Commission, on the basis of EU state aid rules, requested that Hungary terminate the indemnity for unknown claims, that it provided to the buyer, Erste Bank, when Postabank was privatised. After an in-depth investigation, opened in October 2004, the Commission concluded that the measure was in breach of the state aid rules because a prudent private investor would not have granted an unlimited indemnity to Postabank's buyer. Although the indemnity for unknown claims was provided before Hungary's accession to the EU, the Commission has jurisdiction to examine it as the precise financial exposure of the Hungarian State was not sufficiently defined at the date of accession (1st May 2004). However, the Commission considers that the letters sent by its services at the time were ambiguous as regards the obligation to itemise the contingent indemnity, and Erste Bank does not have to reimburse the aid.

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