Gov't Mulls Bailout for Dunaferr

Government

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The government will assess the situation of ISD Dunaferr and weigh measures to rescue the troubled steel maker at a cabinet meeting in the coming week, Technology and Industry Minister László Palkovics said at a press conference in Dunaújváros, where the company is based, on Friday, according to a report by state news wire MTI.

Palkovics said he will table a proposal on allocating resources for Dunaferr, a company "important from the aspect of national strategy" that employs "several thousand" people at the cabinet meeting. The government is in a "difficult position" as state intervention is limited in the case of Dunaferr, a privately owned company, he added.

Palkovics also acknowledged disputes over ownership of the company after its "botched privatization".

Fielding questions, Palkovics said Dunaferr would require HUF 5 billion-10 bln to cover operating costs for the coming two months, but added that the situation is complicated by a number of liquidation procedures launched against the company.

Earlier in September, Dunaferr made a plea for government support after shutting down its second blast furnace.

Dunaferr said lower steel prices paired with the unprecedented rise in energy prices, supply chain issues, and the war in Ukraine had put the company in a situation with which it is "unable to cope alone"

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