Hungary 'blocked Budapest Airport from emergency EBRD COVID-19 Funds'

The Hungarian government blocked Budapest Airport from accessing emergency COVID-19 funding from the European Bank for Reconstruction and Development, according to two sources.

Due to a dramatic drop in air traffic related to the coronavirus pandemic, the airport had applied for a €50 million ($58 million) short-term loan from EBRD's “Solidarity Package” program. The request for support came amid job cuts at the international hub as air traffic collapsed by more than 99% this spring.

But the funding, requested to stabilize the airport’s financial situation, ensure business continuity and pay obligations such as salaries, was vetoed by the Hungarian government in May, when it instructed the decision-making body of the EBRD to remove the application from the agenda, one of the people said. 

The second person said it was “extraordinary” for a government to block investment into its own country and may have the affect of pushing down the valuation of a strategic asset.  

The Hungarian government declined to comment.