Civil organization requests withdrawal of Eximbankʼs loan to Vajna

Competition

The Free Market Foundation (Szabad Piac Alapítvány) has written an open letter to the CEO of Hungarian Export-Import Bank (Eximbank) requesting that the bank withdraw its HUF 6.72 billion loan to a company owned by government commissioner for the film industry Andy Vajna for the purchase of commercial television station TV2. The letter was posted in its entirety on the “kapitalizmus” blog of online daily hvg.hu this morning.

The letter, written by the foundation’s Director Máté Hajba, highlights the conflicting remarks of Foreign Minister Péter Szijjártó who reportedly said that “state funds will not be used to fund the purchase of any media outlets” the letter quoted the minster as saying.

An issue was also raised in the letter regarding the actual ownership of the station, which is currently being contested in court by Károly Fonyó, who reportedly acquired a pre-purchase option for the station at the end of 2013.

The key concern, as the letter goes on to read, is that this loan does not fit the lending profile of Eximbank. As stated on the bank’s website, its aim is to “serve Hungarian exporters through the provision of effective financing and insurance facilities”. Vajna, however, is not an exporter, the foundation’s director writes, adding that providing credit to Vajna also goes against the bank’s stated objective “of facilitating the sale of Hungarian goods and services in foreign markets”.

Hajba has raised questions about the ethical nature of the transaction between Eximbank and Vajna’s company (Magyar Broadcasting Co. Kft.) and is asking that the bank withdraw the loan, in part because of the reportedly unethical nature of Vajna’s dealings with offshore companies and his close ties to the ruling Fidesz party that have allegedly amended laws to favor Vajna’s business ventures, the letter says.

The Free Market Foundation is a civil organization whose mandate is to support competition in a free market economy and to prevent corrupt practices within that system.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.