FRANKFURT, July 24 German state-backed lender
BayernLB said on Thursday it agreed to sell its
Hungarian unit MKB to the Hungarian government to comply with
Hungary will pay 55 million euros ($74 million) for MKB and
in return BayernLB will waive 270 million euros of receivables
due from the unit, BayernLB said in a statement.
It expects the deal to close in September.
The European Commission ordered BayernLB in 2012 to
restructure and sell some businesses as a precondition for
approving state aid for the German regional lender. BayernLB ran
into trouble in 2008 after risky investments turned sour.
The chief executive of Hungary's biggest bank OTP
had said in December that the bank was interested in any lender
that could come up for sale including MKB.
($1 = 0.7421 Euros)
(Reporting by Maria Sheahan; Editing by Kirsti Knolle)