Hungary to cover oligarch's debts to ensure Champions League final proceeds

Hungary's government has announced it will assume the financial obligations of a company connected to an oligarch, ensuring that the Champions League final can proceed in Budapest without disruption. The Executive confirmed that the organization of the UEFA Champions League final this Saturday is not in jeopardy, addressing concerns that had arisen due to the financial problems of the company Lounge.

Lounge, which coordinates event suppliers, is owned by oligarch Gyula Balásy, reportedly an associate of former Prime Minister Viktor Orbán. Local media reported that Lounge's inability to pay subcontractors for essential services like healthcare and catering, following the freezing of its bank accounts by the National Tax Office (NAV), threatened the event's smooth execution. Affected companies had warned they would not provide services without immediate payment advances.

The government stated in a release that it will pay all subcontractors affected by the work performed, in accordance with the contracts related to the Champions League final's organization. The portal 24.hu estimated that Lounge needed to pay approximately 300 million forints (845,000 euros) immediately to these subcontractors. The Ministry of Interior and the Prime Minister's office will closely monitor the processes and ensure necessary funds are allocated.

This situation unfolds as the Hungarian Fiscalía began investigating Balásy's companies for economic crimes in 2024. The investigation gained momentum after Prime Minister Peter Magyar's conservative party defeated Orbán's party in the legislative elections on April 12. The final itself will feature Paris Saint-Germain against Arsenal at the Puskás Aréna in Budapest.