Said Varga, “we are receiving this loan from the Russians at a good, cheap interest” and “the blocks will go live after a ten-year construction period and a six-month trial run, expectedly in 2015 and repayment of the loan will begin only then.”
In reporting on the deal, local business news outlet Portfolio.hu brought into question a number of factors which have thus far gone unexplained, including how any over-budget expenses would be covered, what is to be done about supplementary investment in necessary peripheral projects; and which method(s) the central government might employ to garner the 20% of the budget for which it is indebted.
The government discussed the Russian loan at a cabinet meeting in Budapest yesterday, government spokesman András Giró-Szász informed national news service MTI. The €10 billion loan has four interest rates: 3.95%, 4.5%, 4.8% and 4.95%, he said.
“Hungary may repay the loan early at any time, and the National Economy Ministry has the right to approve payouts, which naturally gives Hungary control over the costs,” Giró-Szász said. Russia is lending Hungary the €10 billion to build two blocks at the Paks plant, credit enough to cover 80% of the cost.
–material by Gergő Rácz was used in this article
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