City Hall has projected a 2014 budget shortfall of some HUF 70 billion (USD 310 million).  Projected expenditures are HUF 316.5 billion (USD 1.45 billion) whereas projected revenues are just HUF 246.7 billion (USD 1.1 billion).
 
Napi.hu writes that, as the city council cannot legally plan a budget deficit, it will supplement the HUF 20 billion loan with HUF 49.7 billion (USD 213 million) left over from 2013 as well as funds previously on deposit.
 
At the end of 2013 City Hall announced a six-part tender – three loans of HUF 5 billion each, one HUF 3 billion and two HUF 1 billion loans.  OTP was the only applicant to offer Budapest City Council all six loans, as there were no other applicants for the three HUF 5 billion tenders. Erste and K&H banks reportedly applied to lend the smaller amounts, but OTP ended up winning all six tenders.
 
Total borrowing costs will be HUF 6 billion (USD 27 million).
 
Budapest City Council signed the contracts with OTP on June 5, which now must receive government approval.
 
Source: The Budapest Beacon
 
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