Hungary and the European Investment Bank (EIB) have signed a credit facility agreement providing funding with the aim of helping the country broaden the scope of the utilization of EU funding. The loan will boost Hungary’s chances to achieve economic development objectives and improve people’s standard of living, Economy Minister Mihály Varga said after signing the documents with EIB Vice President László Baranyay on Monday. The European Investment Bank has been lending to Hungary since 1990, helping Hungary close the economic gap with the EU.
Hungary had concluded a loan agreement of EUR 500m with the EIB in June 2015 as the first tranche of a EUR 1bn facility, aimed at the co-financing of three EU programmes. For the programming period 2014-2020, the EIB has now opened another framework facility, this time of EUR 1.5bn, designed to facilitate the realization of four EU programmes through the funding of related investment projects. Hungary can utilize the first tranche of EUR 500m, provided by the contract concluded today, for the co-financing of EU projects within the next three years.
The utilization of the EIB loan is expected to contribute to the capacity expansion of micro-, small- and medium-sized enterprises, the creation of jobs in free entrepreneurial zones, the development of industrial parks, the modernization of brownfield industrial areas as well as to the development of tourism organizations and the running of national tourism marketing and promotion campaigns, the Economy Ministry said on its website. The funding granted will also facilitate the labour market integration of people with disabilities, the training and employment of the Roma population, the realization of youth programmes as well as the development of emergency medical care for children, it added.
via kormany.hu and MTI photo: Noémi Bruzák – MTI