Budapest City Council Extends Ft 15bn To BKV

  • 31 Jan 2012 8:00 AM
Budapest City Council Extends Ft 15bn To BKV
"Budapest city council on Wednesday voted to extend a Ft 9 billion loan to public transport company BKV with a repayment deadline of April 30. A Ft 9 billion loan to the BKV from MKB bank was due last Friday.

City council decided to grant an additional Ft 6 billion to the BKV. As a result, fares will not be raised, nor will services be reduced.

Mayor Istvan Tarlos said the city will have to reach an agreement with the government on BKV funding by April 30 or else buses and trams will come to a standstill.

An electronic ticketing system could be introduced from 2014, and seven new P+R (park and ride) car parks may be built along suburban HEV lines and the Deli-Ors vezer tere metro line.

City Hall wants the government and Parliament to unfreeze Ft 32 billion set aside for the BKV, and to consider introducing a form of transport tax.

In addition, the city will apply for Ft 20 billion in state subsidy, to which it would add matching funds."

Source: Hungary Around the Clock

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