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Government set to provide HUF 600 million rescue package to producer cooperatives

The government has prepared a HUF 600 million (€2.22m) rescue package for vegetable- and fruit-producer cooperatives operating in south-eastern Hungary, the business daily Világgazdaság reported on Friday.

The finance ministry could approve the rescue package for DATESz, the organization which represents the three largest producer cooperatives operating in the region, next week after conducting an analysis of its seven-year business plan. DATESz's insolvency would jeopardize the livelihoods of 5,000 fruit- and vegetable-producing families in southern Hungary and make it necessary for the government to repay several billion forints in European Union support for the establishment of DATESz. DATESz has incurred significant financial losses as a result of the global economic crisis and inefficient operations. (MTI-Econews)