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November 4, 2020

Hungary bars Budapest Airport from accessing Covid-19 funds

The Government of Hungary has reportedly blocked Budapest Airport, the largest airport in the country, from accessing Covid-19 funding from a financial institution.

The Government of Hungary has reportedly blocked Budapest Airport, the largest airport in the country, from accessing Covid-19 funding from a financial institution.

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According to a Bloomberg report, the airport sought a short-term loan of €50m ($58m) from the European Bank for Reconstruction and Development (EBRD).

The funding would have been used to improve the airport’s financial situation, pay salaries and ensure business continuity amid the Covid-19 pandemic that crushed travel demand.

However, the Hungarian Government directed EBRD’s decision-making body earlier this year to remove Budapest Airport’s application, the report said.

An unnamed source familiar with the matter told the publication that it was ‘extraordinary’ for a government to block investment into its own country. The decision may reduce the valuation of the strategic asset, the person added.

EBRD declined to comment on the matter while the Hungarian Government did not respond to Bloomberg queries.

This comes around a month after a report claimed that allies of Hungarian Prime Minister Viktor Orban has made an unsolicited purchase offer to acquire Budapest Airport.

Budapest Airport is currently owned by Singapore’s sovereign wealth fund GIC, a Canadian pension fund and AviAlliance, an airport management company. They don’t have plans to sell the airport.

Before the pandemic, Prime Minister Orban voiced support to bring the airport under state-control.

Last month, the airport axed 236 jobs due to the impact of the pandemic.

As of 4 November, Hungary has reported more than 86,700 confirmed Covid-19 cases. The death toll in the country stands at 1,973.

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Build resilience in the face of COVID-19 disruption

COVID-19 has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities. Are you interested in actionable insights on the business challenges induced by the pandemic? GlobalData's cross-sector report analyzes the significance of this major disruptive theme across industry verticals. It provides side-by-side research of alternative datasets to present you with unique quantitative analysis of the effects of COVID-19 and how these differ across sectors. Additionally, it offers qualitative analysis of each sector and analyzes COVID-19’s impact on leading companies. Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today.
by GlobalData
Enter your details here to receive your free Report.

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