Budapest settles revolving credit but faces ongoing fiscal constraints

Budapest's local government announced that it has fully repaid its revolving credit facility, drawing on tax prepayments received earlier in the week. After the repayment, the city's treasury holds a small residual amount. The financing bank has signaled that future extensions of the credit line are unlikely, prompting the municipality to halt new contractual obligations, any spending above a set threshold, additional hiring, and institutional investment projects.

A sizable solidarity levy scheduled for mid-October remains unpaid, and city officials say an agreement with the national government is essential to cover it. The strained finances also delayed payment to ArrivaBus for a large bus contract, with the settlement now pushed to March. ArrivaBus, the second-largest bus operator after BKV, provides hundreds of vehicles for the capital's public transport network.