Hungarian Socialists are near bankruptcy, they sell party offices

The Hungarian Socialist Party (MSZP) remains in a difficult financial situation and its leaders decided: they sell their headquarters and dozens of party properties to OTP. Thus, the party can get some money, since several local organizations cannot even pay overheads. When Chairman Jozsef Tobias announced the decision, many of the county presidents were shocked and mentioned the wasting of asset, index.hu wrote.

In the middle of the migrant crisis, the leadership of MSZP was not busy with refugees. They had to deal with the Socialist Party’s financial situation.

There is nothing new in the huge debt of MSZP. Former Chairman Attila Mesterhazy also tried to handle with the indebtedness. It consists of current account loans, mortgages and foreign currency loans.

MSZP leader Jozsef Tobias and Party Director Tamas Katona now found a solution how to get some money. Index.hu was informed from many Socialists that a large part of the part’s assets are sold to OTP.

Tamas Katona announced in newspaper Nepszava a few weeks ago they sell the Jokai Street headquarters this year. The newspaper added that OTP Bank can be the buyer. Katona also said “premises that do not properly serve the political work” will be replaced, but he did not talk about the sale of other properties.

Not only the headquarters will be sold

According to index.hu, MSZP will sell not only its headquarters, but no doubt it is the biggest item. The party will get rid of 38 properties nationally; there are Budapest and rural offices among them. Since the Socialist Party has about 150 properties, this is not a negligible item: namely a quarter of the real estate assets.

It was not officially confirmed by MSZP. But rumors say the following, index.hu wrote: MSZP sells 38 Budapest and rural properties, which already have mortgages, to OTP Faktoring (this is the credit management subsidiary of OTP). OTP Faktoring buys claims so it gets real estates at depressed prices. After that, MSZP rents back most of them from OTP. OTP wins, since gets properties cheaper and most of them already have renters. MSZP wins because they get money (sources talk about a scale of HUF 100 million) and they do not have to pay installments.

County chairmen are shocked

Several county chairmen think the party sells several offices very cheaply, although maybe it is the party’s last positional advantage over the other left-wing parties. Many of them recalled the embarrassing scene when Janos Veres, former Minsiter of Finance and County Chariman of Szabolcs-Szatmar-Bereg allegedly said it is “tasteless” to sell the properties, because some of them were bought by the donations of party members. Tobias said the property sheet states the owner is the Socialist Party.

It is planned MSZP will sign the contract with OTP Bank until the end of the year. But the thing divides the party greatly.

based on the article of index.hu
translated by BA

Photo: MTI

Source: http://index.hu