Minister for National Economy Mihály Varga and EIB Vice President László Baranyay signed a credit facility agreement of EUR 500 million, which the Government can use to finance the development of public road network in Hungary over the next five years.
Before the signing ceremony, Mihály Varga stated that as a result of negotiations between the Government and the EIB the Bank has agreed to provide a credit facility for multiple drawdowns, totalling EUR 500 million, to help finance infrastructure development projects. The first contract makes available a tranche of EUR 140 million.
The credit facility agreement will add funding to the “Prioritized road projects” chapter of the state budget. Thanks to this deal, Hungary will be able to modernise those parts of its public road network at a faster pace that are not part of the Trans-European Transport Network (TEN-T) and that may be not supported from EU funds, the Minister said.
Speaking of the advantages these development projects are expected to result in the Minister noted that a modernized road network may reduce regional inequalities, bolster the efficiency and competitiveness of our companies through improving accessibility, improve road safety and help exploit tourism opportunities.
Mihály Varga emphasised that Hungary highly appreciates the help it receives from the experts of the European Investment Bank. The EIB has assisted the country not only through credit facilities but also with regard to economic development issues. Experts will also help Hungary in the drawdown and utilization of EU funds in the period 2014-2020.
(Ministry for National Economy)
