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Transelektro gets gov’t aid to repay debt

Creditors of Transelektro, a Hungarian machinery and real estate group, will give the company Ft 3.5 billion ($16.9 million) to help restructure debt and save 6,000 jobs, Magyar Hírlap reported. The announcement follows negotiations led by Economic Minister János Kóka to resolve Transelektro's Ft 47 billion of debt.

Commercial banks will contribute Ft 3 billion and company owners will pay 500 million, the newspaper said. The package will help Transelektro resolve liquidity problems and comes with a 75 % state guarantee, raising the total amount taxpayers have spent to help the company to Ft 24.25 billion, Hírlap reported. Transelektro amassed the debt after a series of expansions.