The European Investment Bank (EIB) is lending EUR 300 million to Hungary to finance four Regional Operational Programmes under the National Strategic Reference Framework for the period 2007-2013. The projects to be financed are located in all regions of the northern part of the country, including Northern Hungary, Central Hungary, Central Transdanubia and West Pannon.
These regions are economically very diverse, with GDP per capita ranging from EUR 7 400 in North Hungary to EUR 20 643 in Central Hungary, including the capital, Budapest. The EIB funds will mostly support small and medium-sized investments in the sectors of research development and innovation, particularly in Central Hungary, and transport, education, healthcare and social care. Together with the actions in favour of these regions covered by other programmes under Hungary’s National Strategic Reference Framework, it is expected that these measures will generate an increase in GDP per capita of 30% to 50% in the targeted regions by 2013.
EIB Vice-President Marta Gajecka commented: "The loan signed today demonstrates the excellent level of cooperation between Hungary and the EIB, achieved over the years, particularly in the field of co-financing of projects with EU structural funds. At present, when uncertainty is dominating the financial markets, well devised public sector actions with a long-term orientation can play an important role in stabilising private sector expectations. In this case, the Bank’s support will enable the Hungarian government to implement an integrated strategy of regional development that should significantly strengthen the economic base and competitiveness of the targeted regions."
BackgroundThe 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 loan totalling some EUR 9.4 billion in support of projects promoting EU policy objectives in Hungary.
The 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.