Minister for National Economy Mihály Varga and European Investment Bank Vice President Vazil Hudák have earlier today signed a loan agreement of EUR 400 million to co-finance strategic rural development projects that receive support from the European Agricultural Fund for Rural Development within the programming period 2014-2020.

Hungary can draw from the credit line up to the end of 2020 to support priority projects selected under the Rural Development Programme, Mihály Varga stated. As he stressed, the loan is to be used for the development of agricultural production facilities and enterprises as well as forestry projects, for rehabilitating agricultural areas ravaged by natural catastrophes, investing in physical assets and improving vocational education and the obtaining of skills.

The EIB opened in Budapest a representative office in June 2016, but the Bank and Hungary have been partners in the past twenty-six years. Out of international development-focused lending institutes, in terms of project financing the EIB has been the most active in Hungary. In the pricing of loans to Hungary, the Bank has been benefiting from an AAA credit rating. The EIB is a non-profit institute aiming to provide member states with long-term, low-interest financing facilities with favourable conditions.  We are counting on the EIB as a key cooperation partner also in the future, the Minister stressed.

Following the signing ceremony, Vice President Vazil Hudák said that EIB funding was to help safeguard and create jobs in underprivileged rural regions in the field of forestry, rural tourism and service provision. Funds secured in the contract will also help improve the everyday life of citizens in rural areas by improved environment and food security.

(Ministry for National Economy)