Economics

According to department head, Sándór Végh, The Hungarian Foreign Trade Bank the use of Public Private Partnership is expected take off throughout Hungary very soon. PPP has numerous advantages compared with traditional credit-financed state investments. With PPP state can transfer some risk elements, such as constructional or operational problems and state budget has to pay only annual costs instead of the total sum, added Végh. Some 10-20% downpayment is needed and the interest rates are between those of the state and the market. The complexity of the contract, however can make the project preparation a bit time consuming. The M6 highway is one of the MKB's financing projects at a cost of Ft 10 billion. VG, p.10 (K.H.)

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