During his visit to Budapest today, the President of the European Investment Bank, Mr Philippe Maystadt, met the Hungarian Prime Minister Mr Peter Medgyessy and Minister of Finance Mr Csaba László to discuss Hungary's integration into the EU and future EIB operations in the country. Mr Maystadt signed two loans with Mr. László totalling EUR 360 million for transport projects.

A EUR 170 million loan will finance the rehabilitation and modernisation of railway infrastructure. Within the framework of this project, the railway stations of Rákospalota-Újpest, Székesfehérvár and Érd will be modernised and line sections totalling some 100 km of the Hungarian railway network will be upgraded in various parts of Hungary. All station rehabilitation schemes are located in Pan European Corridors IV or V whereas most of the railway lines are major national communication routes for international and local traffic.

Another EUR 190 million loan will finance the construction of three urban by-passes on major national roads connecting Hungary with Austria and around the north-eastern shore of Lake Balaton. In addition, the expansion of National Road 10 aims at alleviating traffic problems, which currently affect the northern part of the Budapest metropolitan area.

Commenting on the loans signed today EIB President Maystadt stated, The operations signed today represent further EIB support for investment in the upgrading and rehabilitation of key national transport infrastructure, especially with a view to Hungary's future entry into the common market. Indeed, good road and rail infrastructure will help Hungary to harness the numerous new opportunities arising from EU membership.

The prime objective of the EIB in Central and Eastern Europe is to prepare the future Member States for EU membership and to integrate them into the Union. The EIB has the following priorities in the future Member States:

  • Transport improves the connections between the future Member States and the European Union as well as interlinking these countries, which is a precondition for successful economic integration. Upgrading and further construction of the local infrastructure network and its connection to the Trans-European Network is a major element in strengthening economic competitiveness, achieving balanced and sustainable development of these countries and re-enforcing their economic and social cohesion.
  • Protection and upgrading of the natural and urban environment to enable the future Member States to comply with EU standards represents another priority lending area for the EIB.
  • Foreign direct investment is also an EIB priority with multiple importance for the region: it provides capital and know-how, modern technology and management skills which contribute to economic modernisation and increase competitiveness.

Since 1990, the EIB has lent over EUR 20 billion in total in Central and Eastern Europe, of which EUR 9 billion (47% of the loans) was invested in the transport sector (of which EUR 5.57 billion in road and EUR 2.1 billion in railway projects). Loans provided to Hungary so far amount to EUR 3.1 billion, of which EUR 1.252 billion has gone to transport projects.