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Hungary negotiates better terms for Paks II loan

World

Hungary has negotiated more favorable terms for a EUR 10 billion loan from the state of Russia to finance the upgrade of its sole commercial nuclear power plant, in Paks, the Finance Ministry said on Thursday, according to state news wire MTI.

Under the modified credit contract, the loan may be called down until 2031, the expected completion date for the project, the ministry said. The start date for repayment was pushed back from 2026 until 2031, it added.

The ministry said the standby fee for the credit was also "more flexible" in the modified contract.

"The credit contract is extraordinarily favorable because of its long run, and Hungary has the right at any time to repay the credit it has drawn down, at nominal value, without paying any further fees," it added.

Hungary is adding two more blocks at the Paks nuclear power plant which accounts for about half of domestic electricity generation. The Russian loan is covering 80% of the EUR 12.5 bln project cost.

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