Hungary repays first drawdown of Paks loan

MNB

wikimedia

Hungary will make an early repayment of EUR 78.2 million previously drawn for financing the upgrade of the Paks Nuclear Power Plant, Minister for National Economy Mihály Varga told Tuesdayʼs issue of business daily Világgazdaság.

The repayment allows Hungary to save interest and is made possible by the strong performance of the Hungarian economy and the favorable situation on international money markets, Varga told Világgazdaság. Hungary is paying 3.95% interest on the Russian financing for the upgrade while two more reactors are built at the Paks plant, he added.

Under the loan contract with Russia, Hungary may make early repayments without penalty, Varga said, adding that Russian Minister of Finance Anton Siluanov was informed of Hungaryʼs intention to make the early repayment on Monday.

The payment must be transferred within 90 days. However, maintaining the credit line provided by Russia is necessary in the long term as it ensures stability for the Paks 2 project, Varga noted.

The investment at Paks aims at providing cheap and safe electricity to Hungarian private and industrial consumers for decades, the minister said.

Hungary started drawing down the EUR 10 billion loan from the state of Russia last November.

ADVERTISEMENT

Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.