Hungary: EUR 350 million for the protection of forests and for employment

The European Investment Bank (EIB) is providing two loans in Hungary: EUR 200 million to co-finance investments focused on the development, management and protection of forests and EUR 150 million part-financing focused on the growth and expansion of employment by increasing labour market participation of the working-age population.

Mr Philippe Maystadt, EIB President who signed the loan contracts with the Hungarian Finance Minister Mr Péter Oszkó, commented: “EIB long term funds, provided on favourable terms under difficult market conditions, will help the Hungarian Government to co-finance priority projects with other EU Funds. These projects will improve the quality of life in the country through protecting and upgrading the environment and helping Hungary’s citizens to better access the country’s labour market”. 

The loan of EUR 200 million will co-finance the New Hungary Rural Development Programme approved by the European Commission for 2007-2013. It will support EU objectives in particular in the fields of climate change, forestry, biodiversity protection, soil and water management trough development and modernisation of forestry, afforestation of agricultural land, restoring forestry potential and introducing prevention actions, amongst others.

The loan of EUR 150 million will support priority investments under the Hungarian National Development Plan through financing of two Sector Operational Programmes (Social Renewal and Social Infrastructure) to be implemented within the Structural Funds programming in 2007-2013. EIB funds will, in particular, help to improve the development of employability and encourage entry to labour market, improve access to quality education for all, support human resources development in quality training, research and innovation, develop the infrastructure supporting labour market participation and social inclusion.

Note to editors:

The EIB, the European Union’s bank, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Since 1990, EIB lending in Hungary (including the loans signed today) has reached some EUR 11 billion.

The loans signed today are a continuation of the excellent cooperation between the EIB and the Republic of Hungary. Up to now the EIB has provided the Republic of Hungary direct loans amounting to approximately. EUR 4.7 billion supporting the development of the country’s different economic sectors and co-financing priority projects with EU Funds.