5-Mar-2010 11:07 AM

Hungarian Government to invest EUR38 million in Malév Hungarian Airlines

Hungarian Government has reportedly set aside HUF10 billion (EUR37.5 million) of its own general reserves for the recapitalisation of Malév, putting the funds at the disposal of the National Asset Manager (MNV) (Magyar Közlöny/XpatLoop.com, 04-Mar-2010). MNV will add HUF7.3 billion (EUR27.4 billion) from its reserves for the expenses from the renationalisation, meaning a total of HUF17.3 billion (EUR64.8 million) is available for Malév. The state will reportedly convert into shares Malév’s HUF4.7 billion (EUR17.6 million) debt, representing the funds it loaned to acquire Malév Ground Handling. AirBridge, owned by Vnesheconombank, will reportedly obtain a 5% stake in Malév by converting the EUR5.4 million loan it provided to Malév to shares. Vnesheconombank's loans to Malév will reportedly be converted into five-year loans at Euribor plus 5% interest.