The government helps the public service media pay its loans

The government takes over the Media Services Support and Asset Management Fund’s (MTVA) capital sum of 35.57 billion HUF real estate financing-, and its 11.57 billion HUF current asset loan.

In this way, the public service media will have to pay 9 billion HUF less on loans each year, and in exchange the government will get back either the headquarters of Hungarian Radio, or the former headquarters of the Duna channel – wrote Világgazdaság on Monday, according to hvg.hu. This exchange might be beneficial for the government as well, as estates can generate income.

The government decision on the consolidation of the public service media is ready, but it lacks the amendment of the 2015 central budget, which is expected to be made by the middle of November. Negotiations over the loans and the estates can begin after the amendment was enacted.

If the government takes over MTVA’s loan then it will reduce the public service media’s expenses by 9 billion HUF per year: this is the amount of the capital and interest burden of the loans.

The government will most probably get back the headquarters of the Radio on BródySándor street, and the former headquarters of the Duna channel on Mészáros street.

The MTVA makes an estimate on its real estate’s value every year; the last evaluation was made on 21 January 2015. The total value of its real estate portfolio was 15 billion HUF.-

based on an article of hvg.hu
translated by Adrienn Sain

Source: http://hvg.hu/