Budapest, September 28 (MTI) – Hungary signed for a 500 million euro loan from the European Investment Bank (EIB) on Monday.
The contract was signed by EIB Vice President Laszlo Baranyay and Economy Minister Mihaly Varga.
The current loan is the first instalment of a new 1.5 billion euro credit line the EIB made available to Hungary for the 2014-2020 period. The credit line can be used to refinance central budget expenditure related to the co-financing of projects carried out under four operative programmes of the European Union.
The 500 million euro contract signed on Monday will be available for three years.
The current credit line is in addition to a similar-condition 1 billion euro EIB credit line agreed on in June. The parties signed the first 500 million euro instalment of that credit line, helping the co-financing projects under three other operative programmes, in June.
“The EIB loan will back development of the knowledge economy, particularly RDI, higher education and ICT, and…it will contribute to improving education and employability, health and social inclusion,” the EIB said in a statement.
“It will also focus on projects fostering increased use of renewable energy, improving energy efficiency and upgrading tourism facilities, while regional projects will address sustainable urban and regional development,” the EIB added.
The EIB financing is being granted in the form of a Structural Programme Loan. In addition to large-scale 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.