Mammoth credit to Közgép from state bank

34 billion HUF of state-backed credit might have contributed to the rise of Közgép, the up-and-comer construction company allegedly maintaining strong ties with the financial background forces of the now reigning Fidesz party. After a freedom of information request filed at Magyar Fejlesztési Bank Zrt. (MFB) atlatszo.hu learned that this state-owned bank specialized in financing large-scale development projects have handed out easily to questionable corporations. Aside from the 34 billion to Közgép, credit in the amount of 3.8 billion HUF was given to Hérosz Zrt., a company which finally went bankrupt. Duna Aszfalt Kft., another construction company allegedly close to Fidesz received credit worth 5 billion HUF. Our original request was on information regarding misplaced and written-off credit operations for the last ten years, but that part of the data MFB held back, referring to bank secrecy legislation. MFB seems notorious in losing taxpayer’s money. In 2010, the new leadership of the state-owned development bank reported losses amounting to billions of forints.