Gov't seeks alternative financing for Metro 4

Museums

Hungary's government is examining how to avoid burdening the budget with its current financing arrangements for building Budapest's fourth metro line, and would like to find alternative methods such as drawing on Brussels funding, said national daily Népszava on Tuesday. The Ft 300 billion (€ 1.1 billion) metro line currently under construction, and planned to be completed by 2010, is being co-financed by Budapest's city council. In order to keep to the targets set in the euro convergence program, which was delivered to Brussels at the start of the month, the government will "sacrifice" the metro project and change its financing scheme, which is grounded on a loan from the European Investment Bank (EIB), said the paper. Instead it would look to EU funding in order to remove it from the budget. Budapest was earlier reluctant to negotiate such a refinancing plan, but its own interests are supported by keeping the convergence plan's pledges and the municipality is therefore ready to strike a sensible compromise, said the paper. This includes guarantees from the state that the project is carried through by the agreed target date of 2010 and that other important projects, such as the forthcoming Metro 5, are not sidelined because of depleted EU funding, deputy mayor of Budapest Imre Ikvai-Szabó told Népszava. (Mti)

ADVERTISEMENT

Climate change hurts economy, but creates new business oppor... Analysis

Climate change hurts economy, but creates new business oppor...

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Dentons rehires banking and finance partner Appointments

Dentons rehires banking and finance partner

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.