Budapest (MTI) – Hungary signed a 500 million euro loan from the European Investment Bank (EIB) on Monday.
The agreement, signed by EIB Vice President Laszlo Baranyay and Economy Minister Mihaly Varga, has preferential conditions and would make co-financing for European Union funded projects easier, Varga told a press conference before the signing.
Baranyay said the credit would support some 9 billion euros 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, it will co-finance projects related to the preservation of natural and cultural heritage.
In addition to large-scale infrastructure projects, the 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 billion euros available to Hungary during the 2014-2020 programme period.
The EIB’s outlays to Hungary reached 891 million euros last year.