HUF 300bn MÁV debt consolidation off agenda, says state sec
An earlier planned HUF 300bn debt consolidation at state-owned Hungarian railway company MÁV has been taken off the agenda, National Development Ministry state secretary Pál Völner said on Friday.
The debt consolidation was taken off the agenda to ensure the budget deficit target is met, Mr Volner said, answering a question at the Hungarian Railway 2011 conference.
MÁV's operating costs come to HUF 350bn a year, of which about HUF 105bn is covered by its own revenue, but even including subsidies, the company is still HUF 50bn in the red, he said. A restructuring must be implemented to reduce this shortfall, as outlined in the Széll Kálmán Plan, he added.
There is HUF 98bn available at present for vehicle purchases, and a decision has to be taken on how the money is to be divided among the state's transport companies, he said.
Völner said he hoped a national holding company for all public transport in Hungary would be established by January of 2012.
ADVERTISEMENT
Wizz Air Celebrates 2.5 Millionth Passenger Flying From Debr...
Around 2,800 Events Take Place in European Capital of Cultur...
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.
