Budapest-Belgrade rail link may cost HUF 700 bln, reports say

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The total cost of an upgraded Budapest-Belgrade railway link could reach up to HUF 700 billion, according to calculations by Hungarian daily Magyar Nemzet, citing unnamed government sources. The government had yet to react to the report at time of writing.

Citing unnamed government sources, the Hungarian daily said the credit the government would receive from the Export–Import Bank of China for the construction of the line would be HUF 467.5 bln, which it is believed would cost the government approximately HUF 565-612 bln to repay with interest. As the 20-year-yield credit would cover only 85% of total construction costs, the Hungarian government might also need to finance an additional HUF 82.5 bln, the paper noted. 

When publishing the government decree on the rail link, the development was estimated to cost approximately HUF 472 bln, Hungarian news portal hvg.hu reported today. However, the estimated costs have grown to HUF 550 bln due to Budapest’s Olympic bid, the portal added.

Minister of Foreign Affairs and Trade Péter Szijjártó announced that the Chinese state bank would only be chosen if its offer is more favorable than that from the European Bank for Reconstruction and Development, hvg.hu reported.

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