Budapest’s transport company has been saved from financial ruin, for the time being, by a HUF 64bn guarantee from the city to cover its debts. The city assembly voted in favor of an immediate HUF 5bn cash injection into the failing concern to enable the company to make a debt repayment on a bank debt. The city must conclude discussions with the state by April in order for it to draw down HUF 33bn that’s been set aside for propping up the company. Its long-term financial health is still by no means secure, but there’s still hope that it could be the subject of discussions with the IMF and the EU, assuming loan deal negotiations begin soon.
