Gov’t considering measures to support troubled Hungarian food companies

Competition

The government is considering a package of measures aimed at providing state support to help consolidate Hungarian companies whose operations are necessary to ensure the security of supply and demand for domestic agricultural goods and which represent a significant source of employment, Rural Development Minister Sandor Fazekas stated.

Mr Fazekas’s statement came in response to a written question by parliamentary group leader of the governing Fidesz party, Janos Lazar addressed to Prime Minister Viktor Orban regarding whether the government intends to rescue financially troubled sausage maker Gyulai Huskombinat.

Mr Fazekas said under a draft package of measures the state would assume a role in the management and ownership of companies that receive state financial assistance until they repay the support.

The draft measures were drawn up by a working committee initiated by the rural development ministry which included officials from all affected ministries, Mr Fazekas said in the response, adding that he will submit the draft before the Competition Council in February.

There could be a need for legislative amendments to carry out the measures, he said.

The ministry plans to act together with national economy and the development ministries, state assets manager MNV and state development bank MFB to draw a list of companies that could be effected by the scheme, to draw out the techniques and to secure funding, Mr Fazekas said.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Manager screenings - not just for managers Interview

Manager screenings - not just for managers

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.