BUDAPEST: Hungary signed for a €500 mln loan from the European Investment Bank (EIB) on Monday, state news agency MTI reported yesterday. The agreement was signed by EIB Vice President László Baranyay and National Economy Minister Mihály Varga.
Varga said the preferential credit would make co-financing for European Union funded projects easier. Baranyay said the credit would support some €9 bln 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.
The EIB funds will support investments in water, including flood prevention, waste, energy efficiency, renewal and distribution as well as transport projects, completing the road and railway TEN-T and improving roads in less developed areas and railways throughout Hungary, the EIB said.
In addition, the EIB loan will co-finance projects related to the preservation of natural and cultural heritage. In addition to large-scale infrastructure projects, the EIB 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 bln available to Hungary during the 2014-2020 program period.
