Homeless MTV and financial trouble
Wednesday, July 26, 2006, 13:31
Unless Finance Ministry helps out MTV (Hungarian Television) with its loan within five days, this loan is going to be transformed a tax debt. It has only got building of the headquarters for a short period of time; said Zoltán Rudi, after meeting the head of the parliament, Katalin Szily. The parliament should be the employer of the MTV, but since it cannot decide in financial matters, it has only got some supervisory rights. Financing in the MTV is a major problem.
The MTV has obtained a Ft 4 billion (€ 14.54 million), which has its due date five day from now. Rudi would like the finance ministry to take over the debt, or to pay for it instead of the MTV. Before 2004 the parliament used to pay the MTV when it ran out of its budget, so that they could continue work, but since EU regulations apply, there is no way continuing this. Though MTV finished last year with a positive revenue, it was not able to pay back its debt. Converting the loan into a tax debt would mean the MTV would not be able to participate the tenders of ORTT (National Radio and Television Broadcasting Comity), which would mean further Ft 100 million shortfall in the future.
MTV is also facing an other problem of loosing its house, as it has previously been sold, and the new location is not built yet by Millenium Média Bt. MTV got deadline to move out by the end of the year, or pay. This would put the already under-financed media in an impossible situation. (FigyelőNet)