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MFB cautious over BorsodChem bailout

The state-owned Hungarian development bank MFB said it would only provide aid to ailing chemicals company BorsodChem if it sees guarantees that it will be fully reimbursed.

The press department of the National Development and Economy Ministry said MFB would carefully study the company’s business plan for the ensuing period before giving the final nod to the deal.

State newswire MTI queried the ministry upon finding that the volume of loans taken out by the firm in 2007 exceeded its wealth by a considerable margin. Accordingly, the currently mulled loan would constitute indirect state subsidization to BorsodChem.

The ministry press department said the final decision will be reached taking into consideration the opinions of independent market analysts as well as the insight of the banks involved in the prospective bailout. (Gazdasági Rádió)