Matolcsy argues that the timing of the purchase is unfavorable as the coronavirus pandemic has caused an economic crisis. This crisis has been successfully managed but at the cost of a soaring budget deficit, growing state debt and FX debt, a deterioration in the current account, and rising inflation. The planned repurchase of the airport from an FX loan therefore poses a serious financial risk that is not worth taking.
The sale of the Budapest airport was a national strategic sin and an economic strategic mistake, but the "golden rule" of investments is to buy cheap and sell high, however in this case the repurchase price would be very high, Matolcsy said.
The MNB governor also argued that the Carpathian Basin does not require a global air transport hub, but it does need an advanced aviation network. This will require a medium-sized central airport and several smaller, regional smart airports, which will be hubs for freight, drone-based transports, air taxis, and other new services. Such airports could be in Debrecen, Miskolc, Pécs and Kecskemét/Szeged.
Matolcsy wrote that by no means should Budapest's central economic role be strengthened by repurchasing the airport and then developing it. Instead, he promoted the idea of building a brand new central airport about 100 kilometers out from Budapest (in the area bordered by Esztergom, Győr, Székesfehérvár, Veszprém, Dunaújváros, Kecskemét, Szolnok and Eger), with a mandatory high-speed train to the center of the capital.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
