The Budapest City Council announced Friday that it signed on for a Ft 25 billion loan contract with OTP Bank Rt. The city will pay back the forint-denominated loan over nine years at a floating rate of 7.5 basis points over the six-month BUBOR, with no additional costs, Mayor Gábor Demszky said.
The funds, to be paid out by summer, will fund major city developments. The council will use the loan to renovated public buildings with greater accessibility to the disabled, buy new equipment for healthcare facilities and refurbish city-owned schools and nursing homes.
OTP Deputy CEO László Wolf said that with Budapest's excellent credit rating, and since it is a longtime client, the bank extended excellent terms to the city.