Report: MÁV debt decreases on state takeover
During a press conference on Friday announcing EU funding awarded for railway developments, János Fónagy, Minister of State of the Ministry of National Development, also spoke of Hungarian railway company MÁVʼs debt situation, according to government website, kormany.hu.
János Fónagy speaking at the press conference. (Photo: kormany.hu/Ágnes Bartolf)
The state minister noted that despite MÁVʼs credit portfolio amounting to HUF 27 bln in 2002, by 2010 it had reached HUF 300 bln. Since the Hungarian stateʼs takeover of debts worth HUF 108 bln, the companyʼs debt decreased to HUF 152 bln at the end of last year, and is expected to fall to HUF 70 bln by the end of this year, according to kormany.hu.
Highlighting the developments of the past five years, the state minister mentioned that in that period there had been no strikes and wages had increased by 12%. Within that same period, the membership of the MÁV groups had consolidated from 45 to 24, all while under the leadership of CEO Ibolya Dávid.
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