MUNICH, Sept 30 (Reuters) - German state-controlled lender BayernLB said it was providing its troubled Hungarian unit MKB with 173 million euros ($235 million) in funding.
MKB, one of Hungary's biggest banks, posted a 175 million euro pretax loss in the first half of this year.
BayernLB is transferring money to MKB in the form of an internal loan that will then be converted into equity, a spokesman for Munich-based BayernLB said on Thursday.
BayernLB owns 90 percent of MKB, while the remaining 10 percent is owned by Austria's Bawag.
Bawag, itself owned by U.S. private equity firm Cerberus Capital, is expected to put its stake in MKB up for sale soon to comply with European Union demands.
Commenting on financial support for MKB, a spokeswoman for Bawag said : 'In principle, we are prepared to participate.'
(Reporting by Christian Kraemer; Writing by Maria Sheahan; Editing by Will Waterman)
($1=.7362 Euro) Keywords: BAYERNLB HUNGARY/ (maria.sheahan@thomsonreuters.com; +49 69 7565 1286; Reuters Messaging: maria.sheahan.thomsonreuters.com@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MKB, one of Hungary's biggest banks, posted a 175 million euro pretax loss in the first half of this year.
BayernLB is transferring money to MKB in the form of an internal loan that will then be converted into equity, a spokesman for Munich-based BayernLB said on Thursday.
BayernLB owns 90 percent of MKB, while the remaining 10 percent is owned by Austria's Bawag.
Bawag, itself owned by U.S. private equity firm Cerberus Capital, is expected to put its stake in MKB up for sale soon to comply with European Union demands.
Commenting on financial support for MKB, a spokeswoman for Bawag said : 'In principle, we are prepared to participate.'
(Reporting by Christian Kraemer; Writing by Maria Sheahan; Editing by Will Waterman)
($1=.7362 Euro) Keywords: BAYERNLB HUNGARY/ (maria.sheahan@thomsonreuters.com; +49 69 7565 1286; Reuters Messaging: maria.sheahan.thomsonreuters.com@thomsonreuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.