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State acquires 95% of Malév

The Hungarian state has raised its capital of Malév and now holds a 95% stake in the national carrier, Finance Ministry spokesman Ferenc Pichler confirmed for MTI.

The state raised capital in Malév by HUF 25.4 billion, of which HUF 20.7 billion was in cash and HUF 4.7 billion in converted debt.

The state reached an agreement to renationalize Malév on February 26. Under the agreement, former majority owner AirBridge has retained a 5% stake in the airline.

Before the capital raise, on Wednesday, Russia's state-owned Vnesheconombank transferred a €32 million bank guarantee that covered AirBridge for the rental fees which

Malév was to pay Hungary's national asset management company MNV under the privatization agreement. MNV will review the position of the airline in the coming period, MNV spokesman Zsolt Zichermann told MTI. (MTI - EConews)