EBRD lends OTP 200 mln eur, invests 20 mln

BUDAPEST, July 10 (Reuters) - The European Bank for Reconstruction and Development (EBRD) will provide Hungary's OTP Bank OTPB.BU with 200 million euros ($278.8 million) of subordinated loan capital on commercial terms, the EBRD and OTP said on Friday.

OTP can draw on the facility for a period of six months.

The EBRD will use a further 20 million euros to acquire OTP treasury shares, the banks said in a statement.

"The capital enhancement from the EBRD will help OTP Bank mitigate the impact of the recession and strengthen its market position in the current challenging environment in Hungary as well as in the region in which it operates," the satement said.

The EBRD investment is part of the joint pledge by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide over 24.5 billion euros in support of the banking sectors in the region. ($1=.7173 Euro) (Reporting by Krisztina Than; Editing by Hans Peters)