The European Investment Bank (EIB)’s EUR 275 million loan to Hungary is for research, development and innovation projects and two other loans are for the co-financing of priority projects under the New Hungary Development Plan with EU funds: EUR 120 million for smaller local transport infrastructure projects and EUR 45 million in support for the Hungarian national health sector.
The EUR 275 million loan will contribute to implementation of the 2008–2010 investment programme and National Research and Technology Office (NKTH) projects. EIB funds will be used to support NKTH’s investment programmes, which promote R&D projects in priority sectors. These projects will help to accelerate economic growth in Hungary and increase the competitiveness of the Hungarian economy. This is the second operation dedicated to NKTH: the EIB previously supported NKTH’s 2005-2007 investment programme through a EUR 165 million facility.
The EUR 120 million loan will co-finance with EU Structural Funds some 50 local road projects to improve the transport infrastructure of Hungarian regions. Selected priority roads connecting the network to trans-European transport corridors crossing Hungary will be upgraded both in quality and capacity. These improvements will contribute to greater integration of Hungarian regions into the EU Single Market. In addition, they will have a positive impact on the environment in Hungarian cities with the construction of several bypasses.
The EUR 45 million loan is related to the health care component of the Social Infrastructure Operational Programme. In this framework, the EIB loan will co-finance with EU Funds the development of the regional outpatient care network, the preparation of the institutional system of inpatient care for restructuring and IT development in the health care system.
EIB Vice-President Ms Marta Gajecka, who signed the lending contracts with Hungarian Minister of Finance Mr János Veres, commented: "These further important operations signed today demonstrate the excellent level of cooperation achieved over the years between the Bank and the Republic of Hungary, particularly in the field of co-financing EU structural programmes. The Bank’s support will enable the Hungarian government to implement key policy actions in the sectors of regional transport, health and development of a knowledge-based economy, thus strengthening the country’s economic base and competitiveness."
Note to editors:
The mission of the EIB, the European Union’s long-term financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. Since 1990, the Bank has provided funds including the current loans totalling some EUR 8.5 billion in support of projects promoting EU policy objectives in Hungary.
EIB’s lending operations cover all of Hungary’s economic sectors, ranging from basic infrastructure to manufacturing and services, including support for small and medium-sized companies through local financial institutions, and the development of a knowledge-based economy. The Bank supports projects to reduce disparities in regional development, strengthen economic competitiveness and improve living standards and the quality of life of citizens.