EIB Vice-President László Baranyai and Minister for National Economy Mihály Varga signed a loan agreement for EUR 500 million. The main rationale for concluding the agreement was that low-cost EIB loans make the co-financing of projects supported by EU funding easier.

The special condition facility provided by the EIB will help EU funds made available for Hungary to reach a higher number of beneficiaries and improve economic growth and the living conditions of people.

In the 2014-2020 programming period, the EIB provides a framework loan of EUR 1bn for Hungary to help co-finance EU priority projects. Hungary is entitled to draw tranches of the loan from the facility on the basis of case-by-case loan contracts. The amount made available through the first contract, EUR 500 million, can be utilized within the next three years.

The EIB framework loan is to secure the co-financing of the projects of the Integrated Transport OP, the Environment and Energy Efficiency OP and the Connecting Europe Facility. These development projects aim to facilitate the improvement of access to Hungary through road, railway and water transport as well as the improvement of urban and suburban transport infrastructure. In addition, these loans help upgrade water supply, waste water management and –clearing and waste management systems as well as enable environmental protection and energy efficiency development projects.

The EIB has been lending to Hungary since 1990 with the aim of accelerating the convergence process. Since May 2004, when Hungary joined the EU, the country has also been an EIB shareholder.

(Ministry for National Economy)