BKV remains stable despite problems
Tuesday, October 11, 2005, 09:08
Budapest Transportation Company Rt (BKV) is in a stable condition despite recent talk of potential liquidation, business daily Napi Gazdaság reported. The company's operation can be maintained, planned and financed until 2006 March, said yesterday Imre Lakos, chairman of Budapest Municipality's city operational committee. Liquidation problems are due to the irregular flow of revenue, e.g. state subsidies arriving as late as in the first week of January. He admitted BKV's several defaults in paying suppliers. In 2005 Budapest municipality granted Ft 2 billion to BKV, but pass sales fell, which resulted in Ft 2-2.5 billion less income. BKV had raised its revenue expectation from Ft 39 billion to Ft 41.5 billion because a government decision lowering tax on transport contributions made BKV suppose that companies will buy more passes. But companies tended to choose fuel contribution.