Hungary offers to take on $672m of ISD-Dunaferr debt

The Hungarian government has offered to take on HUF150 billion ($672.5 million) of debt from struggling steelmaker Dunaferr, a company spokesman told Steel First on Friday August 23.

The move is a bid to prevent job losses as the company seeks to make efficiency savings, he added.
It comes after an initial announcement from national economy minister Mihaly Varga earlier this week, saying that the state intended to nationalise the company, currently owned by ISD of Ukraine.
“We were sent a letter from the government but it was not a concrete offer. It was a letter stating an offer for negotiation,” Dunaferr spokesman Andras Mezokozy said about the approach made by Varga on August 21.
Talks on a way forward will begin next week, the country’s national economy ministry said on August 26.

Dunaferr is Hungary’s only active steelmaker. The country’s steel industry has been declining in recent years, with steel...


Lisa Barrington

August 27, 2013

17:15 GMT