MÁV CEO still hopes for HUF 300bn debt consolidation
Although the consolidation of state-owned Hungarian railway company MÁV's HUF 300bn in debt is off the agenda for now, chairman-CEO Ferenc Szarvas still expects it to happen, he said in an interview published in the fresh issue of business daily HVG.
"Today, too, I trust the consolidation will take place," Szarvas said when asked about the lack of the consolidation in the 2012 budget bill.
National Development Ministry state secretary Pál Völner said a week earlier that the earlier planned HUF 300bn debt consolidation at MÁV was off the agenda.
Consolidating the debt would relieve MÁV of paying an annual HUF 40bn-45bn in principal repayments and HUF 15bn-20bn in interest costs from its operating costs, thus freeing up money for projects which result in efficiency savings, Szarvas said.
In addition to the HUF 300bn in debt, MÁV has some HUF 2,000bn in implicit debt, he said.
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.