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Hungary Signs €500 Million Loan From European Investment Bank

Tamás Székely 2015.06.30.

Hungary has signed a 500 million euro loan from the European Investment Bank (EIB) on Monday. The agreement, signed by EIB Vice President László Baranyay and Economy Minister Mihály Varga, has preferential conditions and would make co-financing for European Union funded projects easier, Varga told a press conference before the signing.

“We have signed today the first part of the “Cohesion Fund IV.” framework loan in an amount of 500 million euro for the co-financing of the Integrated Transport OP, the Environment and Energy Efficiency OP and the Connecting Europe Facility,” Mihály Varga said. “Under these Programmes the Hungarian State would like to implement priority projects in the field of transport, environment and energy, which are expected to foster development in Hungary and the further integration within the EU”, the Economy Minister added.

EIB Vice President László Baranyay said the credit would support some 9 billion euros in investments. “It will help to implement investments that are important for accelerating the EU convergence process and allowing Hungary to meet national strategic objectives in the areas of growth and employment, climate change and energy independence, all of which are key to achieving an increase in Hungary’s economic competitiveness and improving the quality of life of its citizens,” he said.

In addition to large-scale infrastructure projects, the loan may also be used to finance smaller schemes, which, due to their limited size, would otherwise not qualify for direct EIB financing. The EIB made a credit line of some 1 billion euros available to Hungary during the 2014-2020 programme period. Over the past five years, the Bank has invested EUR 6.1 billion in Hungary. 27% of this has gone to Hungarian SMEs, 20% to industry, services and agriculture, and a further 20% has supported projects in transport and telecommunications, economic news portal said.

via and photo: Noémi Bruzák – MTI