Coronavirus – pro-government companies can profit from the crisis
György Matolcsy, the president of the National Bank of Hungary, said that because of the coronavirus, a multitude of companies that were in the hands of foreign investors before can go into the ownership of Hungarian entrepreneurs. He thinks that this will be an important opportunity for the Hungarian economy in the 2020s.
According to G7, it is a global trend that many companies become devalued and as a consequence become a target for investor groups capable of easily moving huge amounts of money. In Hungary, the latter group consists of entrepreneurs who acquired their fortune with the help of the many public procurement programs they had access to thanks to the government’s decisions.
Interestingly, the idea of bringing key companies into Hungarian hands is not new at all in the country. 10 years ago, PM Viktor Orbán said that in four sectors (energetics, media, retail trade, and banks),
he would like to create a Hungarian majority among the owners.
According to G7, the project was successful. The only exception is the retail sector where Hungarian companies could not beat German ones, so in that area, the Hungarian market share decreased.
That trend will not change because of the economic crisis caused by the coronavirus epidemic, so probably nobody will be able to buy anything in that sector. This is true even if we take into consideration that thanks to a government decision,
the retail sector will have to pay 36 billion HUF (EUR 102M) into the state budget as an extra solidarity tax.
The same is true for other sectors as well because foreign governments will not let big multinational companies fall into the abyss of the crisis. Therefore, G7 expects that principally small and medium companies will get in trouble, so Hungarians will be able to buy Hungarian companies.
This is because the Hungarian government will not be able to rescue every Hungarian company, so those who have a stronger background can start buying the weaker ones struggling with financial problems. 30-40 pc of Hungarian companies do not have enough money saved to pay their employees for months at least. However, there is another category which gained huge profits in the last few years, and in that group,
pro-government enterprises are significantly overrepresented.
This is obvious in the construction sector. The Mészáros and Mészáros Ltd., owned by PM Orbán’s close friend and businessman, Lőrinc Mészáros, has a reserve worth more than 60 billion HUF (EUR 170 million), but other companies owned by pro-government businessmen (Duna Aszfalt, Magyar Építő, West Hungária Bau, R-Kord Ltd.) are also well-prepared to buy other companies. For example, Mészáros’s stock exchange company, the Opus Nyrt., has declared in its strategy that one of its goals is to buy other companies.
It is unlikely that they are going to buy companies in the construction sector, but
it is possible that they will do so in the hotel and catering sector
because many market players struggle with financial problems. Moreover, without proper help from the state, these companies will disappear. However, there are some Hungarian companies owned by pro-government businessmen, like the Hunguest Hotels (Lőrinc Mészáros), which have money to buy other players in the sector.
Furthermore,
even the Hungarian state can appear among the owners of some private companies
in return for the financial help it gives. Andrea Bártfai-Máger, Minister without Portfolio for the Development of Public Assets, for example, referred to this possibility in one of her interviews, saying that it is in the national interest to buy companies that have a vulnerable position in supply chains.
Source: g7.hu
It meets totally with my support, my hopes and dreams for the Future of my beloved Hungary, the principle points made in this article and outlined expressing reason’s and examples by Gyorg Matolcsy – President of the National Bank of Hungary.
Prime Minister – Victor Orban, openly “put us on notice” – part of his Political Platform, near on a decade past, that he has not – Thankfully – moved from but continues to Focus, the absolute need that we continually grow and develop, deeply ingrained, in the philosophies of his gifted political and leadership qualities, that we need to return to far greater levels of companies ownership back into the hands and control of Hungary.
Prime Minister – Victor Orban, his visions and goals, for his beloved Hungary, they are ALL there – Transparent, at our disposal to read and study.
He has lived practiced and carried out part of his dream for Hungary, built around his CORE Political Platform, which may it continue into longevity – for the future.
If at the end of this novel coronavirus pandemic, that has challenged and changed our lives, there presents, the opportunity, of a multitude of companies, that were in the hands of foreign investors, that could be acquired correctly by a Democratically correct system and process, which we currently and correctly live in Hungary, we should totally support entrepreneurial investment and the purchase of them.
The Political Platform – of our Prime Minister, that from the late 1980’s, when he emerged into the public eye, the deep uncertain minefields that Political Environment, that speech he gave in Hero’s Square – the Core of it’s Message – that he has NEVER deviated greatly from, introduced it – lived it – built on it and making it Happen.
Did he in his formative Political years read the a famous quote of Winston Spencer Churchill :
“The farther backward you can look,
the farther forward you can see”
Politically – what has been miraculously achieved under Prime Minister – Victor Orban & his Government and Party, just maybe, the “old British bull-dog” did have an influence on him //
The choice of the word – Boutique – maybe not the best of example, but there are expansions of this word that rest extremely comfortable with me, that relate and have an association of meaning with this word, that to me reflect, the healthy and correct direction that is witnessed, that Hungary, under Prime Minister – Victor Orban, is being directed and Governed.
I like self-confidence, independence, sophistication, qualities that are driven by a hardened central core of proven ideas and philosophies, that are “in-would” in there Focus – building on it’s – Core & Soul, – that benefits it’ principle contributors, in this example/case – WE – the People of Hungary,
We must share – we need to share broadly our vast portfolio of talents skills and expertise – which zoned placed and implemented Correctly – will Benefit us greatly in Return.
In line, meeting totality of my support, my reading and understanding – interpretation of our Prime Minister – Victor Orban – his Government and Party, that our FUTURE, is not to open the flood gates and be swamped/cascaded and drowned through relaxed immigration law, but be BOUTIQUE.
This position, would leave us controlled positions of choice that are open and flexible, extending co-operation – DEMOCRATICALLY – which is our Political Process of Government – but driven by the absolute Focus – Need, of hardening the Central Core & Soul of our beloved Hungary.
This novel coronavirus pandemic that is masterfully being handled by our Prime Minister – Victor Orban & his Government – People Focused – we can come through this CHALLENGE relatively “heavily bruised ” but not vulnerable to be self imploding looking at a destructive lost economy that has darkened days ahead and into it’s Future.
We, if we TOGETHER – FOCUS on being :
(1) – Obedient.
(2) – Disciplined.
(3) – Responsible.
(4) – Trusting.
(5) – Respectful.
(6) – UNITED – UNITED.
These (6) six points will pay HERCULEAN dividends to ALL in our Beloved Hungary, when this novel coronavirus pandemic, surrenders to a large degree by the – Strong Decisive Leadership of our Prime Minister – Victor Orban and his Government and Party – the implementations, the thoroughness/diligence of there Policies & Guidelines BUT we are ALL in this together and WE must – Responsible Diligently Thoughtfully – Do OUR Part & Play our Role.
The article that the Daily News Hungary published on 24 January 2020, ‘Hungary listed as the second most corrupt country in the EU’ was strangely prophetic in a way, given today’s article above. However, it is not ‘if’ but ‘when’ EU money dries up, the government’s ability to show largesse to it’s coterie will be considerably limited. It is worth remembering that ‘The state has spent an average of 6.5 per cent of its GDP on public procurement in recent years, with an average of half of it being partly or it being wholly funded by EU money.’
Source: https://dailynewshungary.com/hungary-is-the-second-most-corrupt-country-in-the-eu/