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Govt okays HUF 8.5 bln capital injection for Malév

Ailing Hungarian national air carrier Malév will get a HUF 8.5 billion capital injection from the government's contingency funds, daily Napi Gazdaság reported, citing a government decree dated August 22.

Malév will hold an EGM on Tuesday to resolve the airline's capital position. After operating with negative net assets of HUF 22.5 billion in 2010, Malév has until the end of August to raise capital to mend its capital structure.

Main Malév owner Hungarian National Asset Manager (MNV) already provided the airline with a HUF 2.5 billion capital injection in the spring and with another HUF 4.5 billion in June.

Malév was renationalized in March 2010, but Russia's state-owned Vnesheconombank still holds 5pc of the airline's parent company.