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EBRD ready to lend to MÁV if company undergoes restructuring

The European Bank for Reconstruction and Development (EBRD) could ensure financing for state-owned Hungarian railway company MÁV under certain conditions, but only if the company takes credible reform measures, daily Népszabadság reported.

In an interview with the paper, EBRD office head Zsuzsa Hargitai said, “In as much as MÁV could open up to the market economy, we could support investment, restructuring or refinancing of loans.” The EBRD has already received a request, she added, referring to MÁV.

It is of utmost importance for the EBRD that the owner, in this case the state, commit to following a schedule for changes, Hargitai said.

“We would like to see a law made on MÁV's restructuring -- complete with the clearly defined measures as well as their timing -- as soon as possible. Knowing this, we could give MAV a €100 million - €200 million loan, backed with a state guarantee of course,” she said.

The loan could be called down after MÁV carries out each measure, Hargitai said. We will not provide pre-financing, she added. (MTI – Econews)