Hungary has found rocks strewn in the road to capitalism, and shareholders of Microsystem Rt, once at the vanguard of Hungary’s drive toward free markets, have decided to liquidate the company: The company, which in the last decade had played a significant role in the domestic computer technology market, booked increasing losses in the last two years and got into a critical financial and economic situation, Microsystem said – increasing losses stemmed from sharply higher debt burdens as the company took loans at more and more unbearable interest rates to finance quick growth in the late 1980s, and the company also blamed multinationals that appeared on the Hungarian market in the early 1990s and squeezed price margins to achieve the highest possible market share; it used a $3m capital injection in 1992 from the London-based European Bank for Reconstruction and Development to finance too rapid growth and it failed to implement a restructuring in time.
