< Back

Hungary agrees with Russia to postpone payment

Aug 15, 2023

The Hungarian government has approved amendments to the agreement with Russia that will allow it to postpone the payment of interest on the Russian loan used to finance the construction of the Paks II nuclear power plant.

This was reported by 24.hu.

By agreement with Moscow, Budapest changed the bilateral agreement through a government decree. It provides that Russia will provide Hungary with a loan of 10 billion euros for the construction of two Paks II power units.


The two countries will agree on the amount of the loan to be used for construction at least six months before the start of the budget period (i.e., by July 1 of each year). Interest payments are to be made within 30 days starting from August 16, the day the amendments come into force.

Hungary will have the right to postpone interest payments on the loan but will be obliged to pay 0.25% of the unused loan funds as a commission. In addition, payments will be made in euros.

Author - Olena Madiak, 15/08/2023

Recent news