DIAKHITEL - STUDENT LOAN VI

The project consists of financing student loans for students in higher education institutions, post-secondary vocational education, training programmes and adult learning programmes in Hungary.

The overall aim of the project is to enable more people to access to higher levels of education and gain qualifications, knowledge and skills that would enhance the economic and social wellbeing of Hungary. The project will contribute to increasing access to higher, vocational education and training and adult education for individuals who otherwise would not have the financial means. This project is therefore likely to generate positive effects, both at individual and societal levels.

The overall aim of the student loan scheme is to enable more people to access to higher education and vocational and adult education programmes, and gain qualifications, knowledge and skills that would enhance the economic and social wellbeing of Hungary. There are increasing disparities between groups of people in accessing financing, information on labour and training markets, and appropriate education and training facilities. Some learners tend to have lower ability to pay for education and training themselves, while capital markets often fail to finance these persons. Public intervention is therefore needed to alleviate market weaknesses. Public intervention is also justified and substantiated with positive externalities. In addition to potential economic inclusion and returns, education, including international, supports social inclusion in the long term, and consequently produces attractive social returns. The long tenor of the financing as well as the flexibility of the terms (fixed or variable rates, EUR or HUF currencies) are unique among the financiers of the Borrower and provide significant support in terms of diversification of the Borrower's debt structure.

The project does not comprise any capital investment infrastructure. In light of this and its immaterial nature, the project does not fall under any of the annexes of the Directive 2014/52/EU amending Directive 2011/92/EU and therefore does not need an environmental impact assessment (EIA).

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/24/EU, where applicable, as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.