REUTERS SUMMIT-Raiffeisen Hungary unit sees capital hike this year

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By Marton Dunai and Gergely Szakacs

BUDAPEST, Sept 29 (Reuters) - Austria's Raiffeisen Bank International will provide up to 200 million euro ($255 million) of extra capital this year to its Hungarian unit, the subsidiary's Chief Executive Heinz Wiedner told Reuters.

Banks are labouring under new burdens the Hungarian government has piled on them in recent months, Wiedner said at the Reuters Eastern Europe Investment Summit on Monday, and Raiffeisen is finding it harder and harder to attain its goal of turning a profit in 2016 after years of heavy losses.

Hungary will force banks to compensate customers for past loan charges, impose new rules on pricing banking products, and initiate a potentially costly conversion of foreign currency loans next year.

The compensation alone carries a price tag of about 3 billion euros for the sector, on top of one of Europe's highest bank taxes and several measures that have cost banks billions of euros in recent years.

"At the moment we are well capitalised but not for the potential additional losses that we are facing here," Wiedner said. "So we will need additional capital and that is agreed with our owners that they will provide that capital."

"We have put in 60 million euros in September that was put in on top so there would be up to 200 million more to come most likely."

Wiedner said the European Central Bank's impending asset quality review and stress tests will probably not have a direct impact on the Hungarian business, but flagged any worsening of tensions between Russia and Ukraine as a risk factor.

Because Raiffeisen wants to preserve its regional network and buyers are few and far between, Wiedner said the sale of the unit was not on the agenda and there were no talks to that end going on at the moment.

Follow Reuters Summits on Twitter @Reuters_Summits (1 US dollar = 0.7883 euro) (Reporting by Marton Dunai and Gergely Szakacs; Editing by Ruth Pitchford)