BKV makes Ft 13.7 bln loss
Wednesday, October 5, 2005, 18:39
BKV Rt, the company that oversees public transport for Budapest, may go bankrupt in the first half of next year without government aid, Népszabadság reported, citing a member of the company's supervisory board. The city didn't fund BKV's operations at all this year, said Miklós Szalka, delegated to the board by the opposition Fidesz party, according to the newspaper. The company had a loss of Ft 13.7 bln ($65 mln) in the first half, 14% more than planned, the newspaper said. The government generally spends the bulk of its 15 billion- forint public transportation fund on BKV and is guaranteeing a loan of the same size for the company, the newspaper reported. In 2002, the state took over Ft 38 bln of debt from the company, Népszabadság said. BKV is Hungary's sixth-largest employer and provides public transport for Budapest, the largest city in the 10 countries that joined the European Union last year.