Hectic state asset management can be expected in 2017

Napi.hu writes that 2017 is going to be a hectic year concerning state asset management: hospital sales are coming, but there’s going to be a need for buying new buildings for new governmental offices and ministries. Asset management is also going to be very disadvantageous this year: 179 billion forints of expenses are up against only 62,4 billion forints of income.

In next year’s budget the government counts with a 62,4 billion forints worth income, which is not too significant ever expenditure. It still doesn’t seem like the hardest year for the Hungarian National Asset Management Inc. who are responsible for the national asset management budget. Despite all, there might be new elements in the processes of asset management, which haven’t occurred before, or occurred only a very long time ago.

Compared to middle-run plans incomes are down the course with 35 billion, but this decline is a technical one: while in former years the carbon-dioxide quota incomes, belonging to the state, were transferred to the state management unit, this is going to increase the income of the development unit next year.

“Out of the 62,4 billion forints, they plan on raising 15,3 billion from the selling of state estates: the governmental intent is to start the significant estate selling this year, but since it’s probably going to drag, incomes will get to the state in 2017” writes the government in the justification of the 2017 budget’s asset management chapter.

As part of the package, they are going to sell unspecified onetime hospital buildings, market a part of the industrial park of Szeged and disengaged ministry buildings.

Napi.hu collected the biggest dividend payers in Hungary: the Szerencsejáték Zrt. paying about 12,5 billion to the exchequer, the Mol Nyrt. counting with a 496 forints dividend plan, which means 11 billion for the state, Magyar Villamos Művek (MVM) paying 7,5 billion in 2017, and HungaroControl Zrt. paying 1,87 billion. The income will be further increased by the rent of the homes bought by Nemzeti Eszközkezelő Zrt., which is estimated to reach 3,2 billion forints.

On the other hand, when it comes to expenses, one of the biggest is the Nemzeti Eszközkezelő Zrt.’s 27 billion house buying budget, matched with the Hungarian National Asset Management Inc.’s purchases, who are planning to spend 18,5 billion forints on the investment of new estates.

Also, the government shows continuous need of buying new estates. 26 billions of next year’s budget will go to the new building of the Ministry for National Economy in the castle district, and the renovation of the Carmelite Monastery, which will be the new building of the Prime Minister’s Office, continues.

The Aquatic World Championships is also held next year, which required 60 billion forints up till now, but this is going to be topped with 12,4 more billions next year. The government decided that the recurring need for a normal conference centre in Budapest will be accomplished next year as well. However, state estates need to be guarded after renovation, so they set apart 2,7 billion forints for the safeguarding of 139 estates in next year’s budget.

What’s great about state asset management is that not only estates and the company portfolio take up money, but they also plan on a 12,7 billion worth capital increase in smaller state companies. 2 billion forints will go to the National Garbage Economy Kft., the Tokaj Kereskedőház Zrt. and 16 more billion forints to support companies under the Hungarian National Asset Management Inc.

Lastly, the additional costs of state asset management will reach 22,7 billion forints in 2017: 2 billion for professionals, appraisal reports and lawyers. 9,4 billion will be spent on the interests of Richter’s bonds that can be turned into shares, and an additional 7 billion forints are set apart for unforeseeable expenses.

Copy editor: bm

Source: http://www.napi.hu/