“The goal of the construction that has been going on since 2010 is moving forward according to a strategy that was thought out in advance. The Hungarian government has determined the strategic areas that either represent the required foundations for economic growth, or the system of instruments required for the welfare and prosperity of the Hungarian people, and the acquisition of which will enable these strategic portfolio elements to contribute to the growth of the Hungarian economy”, Andrea Bártfai-Mager said in an interview for Hungarian financial news portal Portfolio.

The Minister without Portfolio for the Development of Public Assets said that in the initial period following her appointment the most important task was to determine which state-owned companies may be strategically important, meaning that they directly contribute to the development of the economy, and which are those that are better placed under the management of the Hungarian National Asset Management Company (MNV. Zrt.). “This process was completed in 2018, and there are currently 17 strategically designated companies still being managed by MNV. Zrt. These must under all circumstances be made stock exchange capable, primarily with relation to their operations, in the interests of achieving an increase in the value of public assets”, the Minister highlighted.

With relation to the number of staff employed by state companies, she emphasised that in addition to reducing bureaucracy, state enterprises are also expected to continuously monitor critical positions from the perspective of average age, level of training and retirement. Any increase or reduction in staff must always serve an improvement in the economic indices.

On the subject of state assets, the Minister emphasised that the state would like to act as a good administrator and increase them as much as possible. “The increase of over 6000 billion forints (EUR 17.7 billion) is made up of some 2200 billion forints (EUR 6.5 billion) each of property and company ownership shares, with a further 840 billion (EUR 2.48 billion) each in machinery and equipment, and in intangible assets”, she added.

“1529 property asset elements were put up for auction in 2019 using the e-auction system, the total gross reserve price of which exceeded 51 billion forints (EUR 150.8 million). Also in 2019, auctions were published with relation to 537 moveable assets, 302 of which were successful and resulted in 506 million forints (EUR 1.5 million) in revenue”, Ms. Bártfai-Mager explained.

With relation to the National Asset Management Program, she highlighted the fact that she regards the development of the process as an appropriate task thanks to which people who previously lost their homes as a result of forex loans are being given the opportunity to repurchase them. “According to today’s figures, 22,630 people have submitted instalment purchase statements and over 6000 have submitted statements relating to repurchasing property in a single lump sum, of which contracts have already been concluded with 4000. 3500 have remained leaseholders, and we have 300 unsolved cases”, the Minister added.

In the interview, the Minister for the Development of Public Assets said she is upholding her commitment towards the European Bank for Reconstruction and Development (EBRD) and Erste Bank with relation to the selling of Budapest Bank. “A bank should be sold when the investor is offering the best price for it. If the market senses that the seller is constricted by a tight deadline, then it will of course not want to purchase at real value”, she added, declaring that the financial institution will not be sold for less than 700 million dollars, since this is the price for which the state previously purchased it from GE. In recent years, the bank’s profit-generating capability and growth potential have increased, and we would like a solution that contributes to reinforcing Hungarian financial stability and maintaining bank competition”, she stated. According to the Minister, the government is looking at various options, only one of which is a simple cash sale; “In addition to that, there are a host of possibilities with which we can also act in the spirit of the EBRD agreement”. “The most important element of this is not that the state of Hungary cannot own a bank, but that the Hungarian state cannot be a majority owner in a commercial bank”, Ms. Bártfai-Mager pointed out.

She also spoke about post offices, explaining that the government is developing an efficient system that will not only ensure the preservation of market position, but could also mean the appearance of new products on the package logistics market. “We are not planning to close any post offices and wish to continue to maintain postal services in every town, village and street”, she declared.

The Minister said the state is planning to reduce and eventually terminate its ownership share in the Takarék Group of regional savings cooperatives. “Measures will always be introduced in such a way that it is clear if a certain area is already strong enough to survive the termination of the state’s presence”, Ms. Bártfai-Mager said.

(MTI)