The MNB is selling its share in GIRO

The Magyar Nemzeti Bank is selling its 7.3% share in GIRO Zrt. In the future, the Bank intends to be an owner only in companies where ownership facilitates the performance of fundamental central bank tasks or where ownership is indispensable.

The primary objective of the Magyar Nemzeti Bank is to achieve and maintain price stability. In addition, the Bank monitors the safe and efficient operation of payment and securities settlement systems as well as the smooth execution of payment transactions. It performs this activity as an overseer and regulator. Therefore, the Bank is able to have an impact on the settlement and performance of payment transactions without having an ownership stake in GIRO.

In Hungary, the demand for the development of a payment system representing an up-to-date technical level appeared with the introduction of the two-tier banking system. In this payment system, the clearing house for credit institutions provides its services using computerised IT and telecommunications systems. In the spirit of this concept, GIRO was established by 11 credit institutions and the Magyar Nemzeti Bank in December 1988. At present, the company has 27 shareholders; its subscribed capital is HUF 2.5 billion.

Over the long term, the Bank intends to be an owner only in companies where ownership is related to the performance of fundamental central bank tasks or where ownership is indispensable for the performance of such tasks. Therefore, the Bank is now selling its share (of a total 7.3%) in GIRO. Pursuant to the invitation to bid available on the website of the Bank the deadline to submit tenders is 10:00 a.m. (Tuesday) on 14 December 2010.

Tenders may be submitted by business organisations that are entitled to acquire ownership share in a clearing house pursuant to the provisions of Act CXII of 1996 on Credit Institutions and Financial Enterprises (for example, banks, mutual savings banks and foreign clearing houses).

Pursuant to the MNB Act, the Bank pays a dividend to the Treasury from its profit of the given year in line with the shareholder’s decision; consequently, if the tender is successful, any profit made on the block of shares sold may also reduce the burden on taxpayers.

The detailed invitation to bid may be downloaded in Hungarian and English from http://www.mnb.hu. For further information on the sale, please contact: giro_tender@mnb.hu.

MAGYAR NEMZETI BANK

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