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Gov't to provide guarantee on Ganz Rock loans pending approval of restructuring by Brussels

The government decided on Wednesday to provide a guarantee on working capital loans from commercial banks to Ganz-Rock, the former power plant development unit of troubled engineering company Transelektro, if the European Commission approves a restructuring plan for the company, government spokesman Domokos Szollár said.

The size of the state guarantee, if it were to be called down, would be about HUF 2 billion, Szollár said. The guarantee will have no direct effect on the budget if the restructuring in Ganz Rock's business plan is carried out, he added. Ganz Rock employs about 500 people at its bases in Budapest and Kiskunfélegyháza. (MTI-Econews)