MKB Sues Budapest Over Abandoned Property Project
- 12 Mar 2012 8:00 AM
"MKB Bank is suing the city of Budapest at the Capital Court, claiming €25 million and default interest, the bank announced Friday on the Budapest stock exchange website. MKB argues that the city failed to fulfil its duties in the contract with construction company Porto Investment Hungary, builder of the CET Budapest cultural complex on the Pest side of the Danube.
Porto borrowed €28.4 million from MKB for the €30.8 billion project.
The CET was scheduled to open in August 2010 but has remained empty and unused, due to disputes between the city and the developer.
The new city leadership ordered a review of the contract in January 2011, considering it disadvantageous for the city."
Source: Hungary Around the Clock
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