Construction of Paks 2 May be Further Delayed

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Russian news agency Ria Novosti has reported that Hungary will start repaying a loan to Russia of EUR 9 billion for the Paks nuclear power facility investment in 2031, five years later than the original 2026 deadline. The delay might mean that new reactor units may not be nearing completion in the near future, according to speculation in the Hungarian media. Originally, Hungary should have started the repayment process as soon as the nuclear power station was up and running, in 2025 according to plan.

News site Népszava recalls that in 2019 minister of finance Mihály Varga, on a visit to Moscow, tried to negotiate lower interest rates and a delay in repayment, but, apparently, his mission was only partially successful: the interest rate of 4-5% for paying off the plant expansion remains higher than the market average,  but the repayment term was reduced by five years, with the final deadline remaining 2041.

Source: Népszava

CET Editor

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