Budapest Airport in Hungary. Credit: SBL1980.

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

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

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.