MÁV signs five-year track operation agreement with state
State-owned Hungarian railway company MÁV on Tuesday signed a five-year track operation agreement in the framework of which it can issue HUF 35 billion of bonds this year, the National Development Ministry and MÁV said.
The agreement was signed by National Development Minister Tamás Fellegi and MÁV chairman-CEO Ferenc Szarvas.
The agreement makes planning MÁV 's financing more predictable, allowing the state to reimburse it for losses incurred because of its mandate to operate the network of tracks. It allows MÁV for the first time to count on long-term state commitments, it added.
A government resolution dated August 22 authorized MÁV to issue the HUF 35 billion in bonds this year. The bonds carry a state guarantee.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.