EU orders Malev to repay government loans

With Hungary going cap in hand to the IMF, the European Commission has ruled that the government can no longer afford to bail out its flag carrier with loans that are way below commercial rates. The Commission has ruled all financial support given to Malev to be unlawful and ruled it must repay all loans. Malev has borrowed 5 billion forint ($20 million) in December, €76 million 2003, a 4.3 billion forint cash facility, deferral of tax and social debt of 13.8 billion forint, capital increases of 25.4 billion forint and 5.7 billion forint, shareholder loans of 14.9 billion forint