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Govt to review MÁV, BKV debt consolidation

The government will review a planned consolidation of the debts of state-owned railway company MÁV and Budapest's public transport company BKV, National Economy Ministry deputy state secretary Peter Benő Banai said on Thursday, answering a question by MTI.

Under a government decree published early August, the state is to take over up to HUF 300bn of debt from state-owned railway company MÁV and up to HUF 78bn of debt from the capital's local transport company BKV. Under the decree, the 2011 budget was to be modified because of the takeover.

Since the decision to take over the debts was taken, trends on global markets and their effect on Hungary have prompted the government to review the decision, Banai said. Based on this review, the government will decide whether the debt takeover should take place or whether it should be modified, he added.