Russia and Hungary signed an agreement on €10 Billion loan for Paks NPP completion

Early March the Russian Government was reported to allocate Hungary a loan of up to €10 Billion to build and commission Units 5 and 6 of Paks NPP. That time, the Russian Ministry of Finance was charged to hold, jointly with the Ministry of Foreign Affairs, Ministry of Economic Development, ROSATOM and Vneshekonombank, negotiations with the Hungarian party and, if the agreement is reached, to sign the loan agreement on behalf of the Russian Government.
 
The money is provided for 21 years.
 
Hungary will start to repay the loan after the reactors have been commissioned (on the closest date to this event, i.e. March 15 or September 15) but not later than March 2026. The interest on the loan commencing 2014 until the reactors commissioning (and not later 2026) will be 3.95%, then over the first seven years of repayment – 4.5%, during the second seven-year period – 4.8%, and in the third one – 4.95%.
 
At the present time, built to the Soviet design Paks NPP operates four VVER power units with a total power capacity of about 2,000 MW. In 2009 the Hungarian parliament approved construction of two new reactors at the plant site. In January this year Russia and Hungary signed an agreement concerning the cooperation in the peaceful use of atomic energy, which provides for construction of two power units of 1,000-1,200 MW capacity and a fuel supply and servicing contract.