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State to inject Ft 111.6 bln in MÁV

The state will raise capital in Hungarian railway company MÁV by Ft 111.6 bln, the Ministry of Economic Affairs and Transport told MTI on Friday. The capital injection will be used to pay off loans and raise assets.

The capital raise will take place in two installments, one in January and the other on a date to be decided on later by the government and MÁV's management. MÁV's stock of loans reached Ft 272.4 billion at the end of September. Ft 153.6 billion of this was used for operating costs and Ft 118.8 billion for investments. Almost 90% of MÁV’s loans are long-term. About 80% of the stock carries a state guarantee. In October MÁV signed a contract for a Ft 55 billion state-guaranteed loan to cover operating costs, and a tender for a Ft 6 billion current account loan is underway. (Mti-Eco)