By Gergely Szakacs
BUDAPEST (Reuters) -The European Bank for Reconstruction and Development is selling its 15% stake in Erste Group Bank's Hungarian unit back to the Austrian group after the Hungarian government's recent exit from the bank, a top EBRD official told Reuters.
In power since 2010, nationalist Prime Minister Viktor Orban has led a more than a decade-long campaign to bring Hungarian ownership in banking, media and the energy sectors above 50%.
However, Economic Development Minister Marton Nagy has recently flagged a review of non-strategic assets that could be sold as Orban's government aims to raise the required financing for the acquisition of Budapest Airport.
Austrian lender Erste said on Friday it was repurchasing a 15% stake in its Hungarian subsidiary, currently held by Hungarian state-owned Corvinus International Investments.
The deal valued the stake at 87.55 billion forints ($252.24 million), compared with the sale price of 38.9 billion forints in 2016, when the stake was sold as part of an agreement with the Hungarian government and the EBRD.
Francis Malige, EBRD managing director of financial institutions, said the investment had been designed to help the Hungarian bank recapitalise while supporting a positive relationship with the authorities.
"The government's recent exit from (Erste Bank Hungary) means that there is no more state ownership of subsidiaries of Western banking groups, which is good news for the sector's stability," Malige told Reuters.
"Our job as EBH's shareholder is done," he said. "We received a call notice from Erste last Friday and are proceeding with the sale of our stake to the group, based on terms agreed during our 2016 investment."
The deal was part of a landmark agreement between Orban and local banks in the hope that a cut in a hefty bank levy would trigger an increase in lending to businesses.
($1 = 347.09 forints)