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Oct 09, 2018

EIB provides Hungary with loan of more than 70 billion HUF for the co-financing of EU-funded projects

The contract will help the implementation of transport infrastructure, drinking water supply and energy efficiency projects

The European Investment Bank (EIB) has provided a loan of more than 70 billion HUF (400 million EUR) to be used as own funds required for the co-financing of EU-funded projects.

The contract was signed by Mihály Varga, minister of Finance, and EIB Vice-President Vazil Hudák, which will help the implementation of transport infrastructure, drinking water supply and energy efficiency projects.

According to kormany.hu, Hungary concluded an agreement with the EIB in 2015 according to which Hungary may draw funds from a stand-by loan facility of 1 billion euros for the pre-financing of own funds required for EU-funded projects up to the year 2020.

Mihály Varga said that in line with the terms of the agreement, the projects expected to be financed through the instrument include one for the upgrading of drinking water services in Budapest, another for the creation of a railway link suitable for personal transport between downtown Budapest and the Ferenc Liszt International Airport, and one for the extension of several existing highways and motorways (e.g. M4, M6, M8 and M30) to reach the country’s borders.

The minister added that the amount made available by the current agreement is accessible within the next three years for the co-financing of EU-funded projects.