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BKV may not qualify for state support

The local council-owned Budapest public transport company BKV may not meet all conditions for state support, government spokeswoman Bernadett Budai suggested at a press conference.

When asked whether the government would give BKV any cash or credit guarantee, Budai said companies majority owned by the state or local councils must meet certain conditions if they are to receive state support, and these include not paying excessive benefits or severance payments.

It was recently revealed that BKV gave some of its former managers big severance packages.

BKV CEO István Kocsis, who has been in his post for just a year, recently said that the transport company needs HUF 30 billion in government support in order to ensure its stable operation until the end of 2010. He said that the company has more than HUF 10 billion in medium- and long-term loans due to expire this year, adding that the sum of the company's expiring credit will reach HUF 40 billion if current-account credit is included.

Budapest mayor Gábor Demszky announced late Wednesday that the local council decided to recall all members of BKV's boards. (MTI – Econews)