October 9, 2008 / 3:53 PM / in 10 years

Hungary govt, OTP deny talk of govt rescue package

BUDAPEST, Oct 9 (Reuters) - Hungary’s government and OTP Bank OTPB.BU both denied market talk late on Thursday that the government was planning a fiscal rescue package for the bank.

OTP’s stock fell by more than 14 percent late in trade on Thursday. Several currency dealer said that the stock’s plunge, along with a fall in the Hungarian forint of over 2 percent against the euro was due to this rumour.

“This is absolutely nonsense,” OTP Chairman and Chief Executive Sandor Csanyi said. “Someone just speculating and trying to push the stock down in an illiquid market.”

Government spokesman David Daroczi also denied the rumour.

“There is a rumour coming from London that OTP is getting nationalised,” one Budapest-based currency dealer said.

Reporting by Balazs Koranyi; Editing by Andrew Callus

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