OTP rumored to join the reconstruction project of M3

NOL.hu reports that it seems the OTP-led financial consortium would finance the reconstruction of the infrastructure of metro line M3 in case the European Union refuses to support the project costing 137.5 billion HUF.

According to the site, it gets more and more likely that the application for support would be denied, or the project would gain partial support only. OTP has not confirmed nor denied their possible involvement yet. The chief mayor of Budapest sent a message through his communication director saying whatever resources are used does not matter. Someone has to pay the costs.

Rumour had it the European Investment Bank may become further involved in the financing process, though it already provides a 100 billion HUF loan for the capital. Of this amount of money, 62 billion are earmarked to be spent on projects regarding transportation, and thus, will be paid for the Russian carriages.

However, Budapest should be better without any more loans, as repaying the debt to BKV already needed governmental support, and Tarlós – unlike his predecessors – is proud of not having been tossing the city into huge debts. Moreover, the decreasing resources would not benefit further loans, either.

Also, the outsourcing of the agglomeration lines and bus lines of the capital narrowed down BKV already, while the fights about the overhead costs caused less available coverages for the public utility companies.

Thus, by law, and because of the limited credit solvency, the government has to ensure guarantee, which would surely be provided on conditions, and at a high price. It appears that financing the reconstruction may be a political case: the European Committee – especially after Brexit – might wary making a decision that could be titled as a bad use of EU resources.