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Could the Budapest Transport Company go bankrupt at any moment?
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The Budapest Közlekedési Vállalat (BKV), or Budapest Transport Privately Held Corporation as it is called in English, is facing serious financial difficulties as of 2022. If Budapest and the company cannot find a working solution, the company as a whole might cease to function, and it could go bankrupt.
The budget seems problematic, and there is a possibility that the planned sources of income are not guaranteed, but the continuous increase in energy and gas prices has also put the company in a bad spot.
According to Világgazdaság, BKV estimates the budget deficit of 2022 to rise to a whopping 26 billion forints (€68.4 million) by the end of 2022, and this number is calculated with a 14-billion-forint (€36.8 million) subsidy which has not yet been granted to the company.
While underfinancing is not necessarily uncommon at BKV, owned completely by the local government of Budapest, the expected budget deficit for this year is drastic.
Mfor reports that the company’s business plans for 2022 should have been already discussed at the previous meeting of the Budapest General Assembly. However, it was postponed, albeit it was already in the second quarter of the business year.
Gergely Karácsony, the Lord Mayor of Budapest and the adducer of the company’s 2022 business plan, suggested it be accepted by the General Assembly; however, the matter was taken off the agenda despite the decision having been made about last year’s business plan in March.
According to the Mayor, it will be one of the most important parts of the agenda of the Budapest General Assembly on April 27th. As to why it was postponed, Vice Mayor Ambrus Kiss told Vg that they needed to re-evaluate the risks and the business plan in light of the increasing energy prices. He added, however, that Hungary’s capital will have no more budget in a week’s time, and it cannot produce 50 billion forints (€131.6 million) out of thin air.
REMEMBER : Those at the recently held National Elections in Hungary, that voted for the return to office – the Fidesz led Party under it’s Leader and Prime Minister – Victor Orban – you take – OWNERSHIP – ACCOUNTABILITY and Responsibility – for the subject of this article and “other” worsening – BROADSHEET – matters, that are Factually occurring, at this point of time in Hungary.
ACCEPT – Hungary, it’s Economy – continues to downward TREND.
What is Going to Save it ?
Who is Going to Save it ?
Globally – it is known – in the right & proper places of the Power Players of the Global Economy – the relationship ENJOYED by Hungary – with Russia & China.
The “bail out” – that Hungary needs – that will be Borrowing of Funds – in the immediate FUTURE – who again, or first timers – who are going to be the Bankers ??