ADVERTISEMENT

Gov't go-ahead to HUF 35 bln MÁV bond issue

MNB

The government has authorized state-owned railway company MÁV to issue HUF 35 billion in state-guaranteed bonds this year to cover expenses that are not covered by the state budget, a government resolution dated August 22 and published in the official gazette Magyar Közlöny on Monday shows.

Because of the urgency of the transaction, MÁV has been allowed to refrain from inviting a public tender for the issue, though the company must obtain offers from at least three applicants.

The bonds will be placed privately and will have a run of no more than three years.

The government will provide the guarantee free.

The state will take over up to HUF 300 billion of debt from state-owned railway company MÁV under a government decree published in early August. The national development minister shall submit a proposal for a cost-efficient restructuring of the company that will ensure it does not continue to run up new debts by September 30.

The decree, which also approves the takeover of the debt of Budapest public transportation company BKV and the buyout of PPPs, corresponds to plans outlined in the Széll Kálmán Plan, a restructuring program the government presented in March.

ADVERTISEMENT

PMI edges down to 52.2 in November Analysis

PMI edges down to 52.2 in November

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.