13-07-2011

Debt Consolidation Moves Forward in Hungary

By FNE Staff

BUDAPEST: The Hungarian National Film Fund will receive HUF 5.97 billion (EUR 22.5 million) to consolidate the debts of the Hungarian Motion Picture Foundation (www.mmka.hu). The 11 July 2011 decision takes effect immediately.

The decision of the Hungarian government was published in the official state journal Hungarian Gazette.

This support for the newly founded Hungarian National Film Fund (run by CEO Ágnes Havas CEO and Film Commissioner Andrew G. Vajna) rescues the troubled film production and distribution companies and the art house cinemas which have been waiting for their contracted support from the insolvent Hungarian Motion Picture Foundation for more than a year.

No information regarding the Film Fund's payment priorities was available. The debts of the Hungarian Motion Picture Foundation are said to reach 10 billion HUF, about 5 billion of which are loans from banks. Film professionals expect Vajna to reach an agreement with the banks about the repayment of the loans. Negotiations have been ongoing since late April.

Some HUF 3.5 billion of the allotment came from from the Ministry of National Economy, HUF 1.5 billion from the Prime Minister's Office (part of this amount might be used to support new projects) and HUF 970 million from the Ministry of National Resources.