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BKV to be saved with HUF 23 billion

Budapest's cash-strapped public transport company BKV will be saved from bankruptcy next year as the government and the city council have agreed on the key points of bailing out the indebted company by providing HUF 23 billion in additional funding in 2010, the daily Népszava said.

The sum, to be given in three installments, will be set aside in the state budget and in the capital city budget, and not be provided as a loan, the paper said.

The government, however, insists on a set of strict criteria for its HUF 18 billion subsidy, which include transparency of the company's financing and operations. The rest of the subsidy, HUF 5 billion, will be provided by the city.

Prime Minister Gordon Bajnai and Budapest Mayor Gábor Demszky will meet to discuss BKV's financing during this or next week, Népszava said. (MTI-Econews)