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Small businesses are recovering faster than big corporations, says head of OTP

Small businesses are recovering faster than big corporations, says head of OTP

Autor: Liviu Chiru

03.03.2011, 09:18 10

Small and medium-sized enterprises, which last year were hit thehardest amid a collapse of their business, are now beginning torecover, with their financial situations sometimes looking betterthan those of big companies, says Laszlo Diosi, the head of OTPBank, the local subsidiary of the biggest Hungarian financialgroup.

"We will focus on funding SMEs this year," said Diosi during ameeting with journalists. OTP, a medium-sized bank with around onebillion euros in assets, includes in the SME segment companies withup to 2 million euros in yearly turnover.

A year ago Diosi said small firms were the most affected by thecrisis, because they did not have reserves or the ability to makesignificant savings by cutting costs. Now, he notes a surprisingrebound of small businesses, while big companies are stillstruggling.

In fact, OTP posted losses in the second half of last year afterit had to set up provisions for a number of high-value loansgranted to real estate developers.

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