Subscribe to our social channels to get the latest news about Hungary!
Hungarian State Railways in trouble, operation may become unfundable
Change language:
MÁV Hungarian State Railways Zrt. is in big trouble, its operations could become unfundable in the autumn.
MÁV asks for government help
MÁV has requested the help of the Ministry of Transport to raise funds for its additional expenditure of up to HUF 200 billion (EUR 498 million) this year and in 2023, VG.hu reports. The state-owned company’s burdens have increased primarily due to the surge in electricity prices. Without government help, its operations could become unfundable by the beginning of autumn.
The MÁV Group had already calculated an increase in its electricity and fuel costs in last year’s planning, napi.hu reports. However, the actual data show a more dramatic increase than forecast. VG.hu understands that the actual energy costs of the passenger transport subsidiary MÁV-Start Zrt. in the first half of the year were almost four times higher than a year earlier.
- Read also: Strange Hungarian habits
The railway company’s problems are exacerbated by the declining but still noticeable impact of the epidemic on revenues and defence expenditure, or the mounting interest charges due to the prolonged war.