On Wednesday the Government will discuss a report by the Ministry of National Economy on the state taking over the debt of local councils, Government Spokesman András Giró-Szász said.

Speaking on public television M1 on Monday, he stated that those spreading the rumour, implying that the Government would be unwilling to repay the debt, is untrue. It is another matter, however, that the state, using its position and room for manoeuvring, always tries to protect the interests of the Hungarian state and its citizens, he said. The Government has made it clear that by assuming the huge municipal debt it will improve its bargaining position in its dealings with the banks, he added.

Banks have also benefited from the measure, he said, as a part of these debts saw little chance of being repaid and banks consider the state as a better debtor.

Prime Minister Viktor Orbán announced on October 27 that the state would take over debt worth 612 billion forints (EUR 2.17bn) from 1,956 municipalities across the country.

The Government’s Spokesperson also talked about the strategic agreements concluded with Coca-Cola HBC and Gedeon Richter Plc, in order to preserve work places. He added that further four similar agreements are planned, among others with automotive companies.

(Prime Minister's Office)