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1 OMRI Daily Digest - 3 March 1997 (mind)  34 sor     (cikkei)

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OMRI DAILY DIGEST
No. 43, 3 March 1997

HUNGARIAN DEPOSITORS PANIC. Rumors that Hungary's second largest retail
bank is going bankrupt caused thousands of deposit holders to rush to
Postabank branches on 28 February, withdrawing 21 billion forints ($131
million) and sending the stock exchange's BUX Index down 140 points,
Hungarian media reported on 3 March. Postabank and National Bank of
Hungary (MNB) officials immediately assured depositors that the rumor
was a false alarm and that the bank's healthy liquidity will allow it to
meet its obligations. MNB also said that its resources will be made
available to ensure the cash flow, if necessary. Suspecting a political
plot behind the false alarm, Finance Ministry State Secretary Laszlo
Akar said it was no coincidence that the panic was timed to coincide
with the farmers' demonstrations and that the secret service will
investigate the origins of the rumor. Postabank manages about 200
million forints in individual savings. -- Zsofia Szilagyi

HUNGARIAN DEMOCRATIC FORUM TO EXPAND CIRCLE OF ALLIES. The opposition
Democratic Forum wrapped up a two-day national convention on 2 March,
concluding that it will sign an election agreement not only with the
opposition Young Democrats but also the Christian Democrats, Hungarian
dailies reported. Party President Sandor Lezsak defined the Democratic
Forum as a national centrist party that identifies itself with Christian
values. The party called on the cabinet to urgently solve problems in
agriculture, recently highlighted by a farmers' road blockade in eastern
Hungary. In January, the Democratic Forum and the Young Democrats
announced that they intended to field joint candidates in the 1998
general elections, which was followed by a Christian Democrat-
Smallholders Party cooperation pact. -- Zsofia Szilagyi

[As of 12:00 CET]

Compiled by Sava Tatic

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