Financial and insurance activities
65 - Insurance, reinsurance and pension funding, except compulsory social security
Type of Restructuring:
Planned Job Creation:
Aviva Life Insurance, founded in 1996 by Hungarian Credit Bank (Magyar Hitel Bank) and acquired by ABN AMRO Hungarian Bank, then by CGNU, said it would hire 500 dismissed government employees. Aviva promised it would provide training for former public workers based on an agreement it signed with the Ministry of Social Affairs and Labour. Other companies also offered to hire dismissed public employees, such Spar Hungary, Suzuki, Budapest Bank, and the Budapest Public Transportation Company. The job offers respond to the wide-ranging project of the re-elected MSZP-SZDSZ (Hungarian Socialist Party - Alliance of Free Democrats) coalition government to streamline the entire public administration system, which forms part of the efforts of the Government to reduce state expenditures and to restore the budgetary balance (austerity package). All ministries have been affected by the reorganisation, as a result of which one third of the 7,300-7,500 strong ministry workforce and related institutions is expected to be laid off in the next two years (in average 200-220 employees per ministry).
25-08-2006Budapest Business Journal