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Gov't close to agreement with Russian bank on Malév

The Hungarian government is close to reaching agreement with the Russian state-owned Vnesheconombank holding a 5% stake in the national carrier Malev, daily Népszabadság said, quoting an unnamed source on Friday.

Commenting to the paper on an interview minister of national development Tamás Fellegi with Bloomberg wire service, the source an agreement has to be finalised by the Hungarian and Russian prime ministers, at their meeting scheduled before the end of this year.

Vnesheconombank is expected to hand over all control to the government and quit Malév but an agreement still must be reached on the size of the bank's claim for its earlier financing and how much it will recover from that, the source said.

The minister said in the interview there are intensive talks underway with three unidentified investor groups. The paper has learnt that there are talks with Turkish and US investors at the moment. It is urgent to reach an agreement as Malév's financing is only ensured until January, the paper said. (MTI-Econews)