Cabinet Provides Budapest Transport Company BKV Guarantees
- 6 Jul 2012 9:00 AM
The cabinet has agreed to provide a full guarantee for financing the BKV after the city agreed on extending refinancing of the public transport company's Ft 63 billion debt with seven banks last week. The decision was made just before a Ft 48 billion BKV loan come due.
City council announced a public tender for renewing the loans of the public transport company in April.
Talks began with ten banks and the city eventually reached agreement with seven: Budapest Bank, Erste Bank, Granit Bank, KDB, MKB, OTP and UniCredit.
The new leadership of the city took over BKV with Ft 70 billion debt in addition to investment requirements for the overhaul of the city's transport infrastructure, including Ft 800 billion to replace old vehicles, mayor Istvan Tarlos said.
In addition, the builder of the fourth metro line is claiming Ft 105 billion from the city, he added.
Source: Hungary Around the Clock
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