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State to assume Budapest’s HUF 100 billion debt

MNB

Hungary’s central government is to take over HUF 100.7 billion in debt from the Budapest city council by February 28 as part of a takeover of municipal debt by the central government, a proposal on the city council’s agenda shows. The city council is expected to authorize the mayor to conclude the necessary agreements.

In the first round of municipal debt consolidation, the state took over HUF 104 billion or 60% of the Budapest municipality as of June 28, 2013, the proposal on the city council’s agenda shows.

Remaining debt -- outstanding on eight loan agreements -- rose to stand at HUF 107 billion at the end of December, as a balance of repayments and drawdowns, and will be taken over in full by February 28.

The move is part of the state’s takeover of the remaining debt of the country’s municipalities, worth about HUF 420 billion, by February 28, announced by Prime Minister’s Office State Secretary János Lázár in November 2013.

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