20-07-2011

Vajna Bails out Hungarian Producers

By FNE Staff

BUDAPEST: The Hungarian National Film Fund announced on 20 July 2011 that it has reached an agreement to purchase the claims of three banks with loans to Hungarian film producers.

The banks - ERSTE, MKB and FHB, which made the majority of the loans - sold all their claims to the Film Fund, and negotiations with other banks are also expected to be concluded soon.

Andrew G. Vajna film commissioner and Ágnes Havas, the CEO of the National Film Fund were granted HUF 5.97 billion (EUR 22.5 million) on 11 July to consolidate the debts of the Hungarian Motion Picture Foundation (MMKA, www.mmka.hu). The producers had received bank loans to finance their support from MMKA, but they were unable to pay back the loans when the MMKA became insolvent.

After reaching an agreement with the banks, Vajna and the Film Fund will start negotiating with those companies that had projects financed directly by MMKA, but which had not yet received the grants.