Privatization began in Hungary in 1990. The process is supervised by the government, but decisions are made based on input from the manager of the state's business assets and the Hungarian Privatization and State Holding Co. As of June 1997, a vast majority of the State's assets have been privatized by sales to strategic investors through competition. However, the Hungarian Electricity Works Co., Ltd., Raba Rt. (involved in manufacturing), MAHART (the shipping company) and Antenna Hungaria Broadcasting and Radio Telecommunication Co. Ltd. all remain fully state owned, and their privatization has not yet begun. The Hungarian Telecom Company, MATÁV Rt. was privatized over 70% as of 1995. MATAV currently has a monopoly on voice systems until 2002. After that, competition is excepted to take hold and prices will be more competitive. Because MATAV still has a monopoly on voice systems, there is some stagnation in the market; however, when the market opens, growth is expected (12).

ÁPV Rt. is a decision-making and executive organization representing the state in respect of its ownership rights and the execution of such rights. ÁPV Rt. was established in 1994 as a successor to the State Holding Company and was mandated by law to fulfil state privatization and holding duties. Through this organization, there has been an establishment of a modern mixed economy based on private enterprise (13).

In 1995, the total or partial sale of the 1,857 state-owned companies registered in 1990, left the state with a total of 661 entities. From this, the state owns a majority stake in 363 and a minority stake in 298 entities (14).

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