Hungary's Fidesz Vice President Calls For Renegotiation Of Local Gov’t Debt
- 31 Oct 2012 8:00 AM
The state should renegotiate the terms of the Ft 612 billion of debt it will take over from local governments, Fidesz vice president Lajos Kósa told M1 on Tuesday morning. He said talks should be held with the six banks who have extended loans to local authorities, on such questions as yields and instalments.
The loans have provided “windfall money” for the banks, Kósa asserted.
Kósa, the mayor of Debrecen, suggested that separate agreements on the debt transfer be signed with local governments, as it has not been decided whether the government will simply take over 40% of the debt from councils or whether the percentage will vary depending on the local authority’s tax revenue.
Source: Hungary Around the Clock
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