Are you sure?

Budapest Public Transport needs HUF 30 billion

The Budapest Public Transport Company (BKV) needs HUF 30 billion (€113.35 million) in government support in order to ensure the stability of its operations through the end of 2010, BKV CEO István Kocsis told the daily newspaper Világgazdaság in an interview published on Monday.

Kocsis told the newspaper that BKV will begin to experience liquidity problems during the fourth quarter of this year if it does not receive supplementary funding from the government.

The BKV CEO 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 rises to HUF 40 billion if current-account credit is included.

Kocsis noted that BKV covers around 42% its operating expenses through transportation fees, noting that this figure is high by international comparison. (MTI-ECONEWS)