In a press conference, which took place in Budapest today, the European Investment Bank (EIB) presented its 2014 results, placing special focus on activities in Hungary and the prospects for future initiatives in the country.
EIB Vice-President László Baranyay stated: “As in previous years, the EIB maintained a dynamic momentum of loan signatures in Hungary also in 2014. The Bank provided loans of EUR 756 million to finance projects contributing to the increase of the quality of life Hungarian citizens, reduction of disparities in regional development and strengthening the country’s economic competitiveness. This year the EIB expects to increase its lending in Hungary significantly: we envisage providing some EUR 1 billion to co-finance projects with the European Commission. In addition, we will continue improving the access of SMEs and larger private corporates to long-term financing under favourable conditions.”
In the area of the strategic infrastructure, in 2014, the EIB loan provided a loan of EUR 100 million to finance the extension, upgrading and improvement of the reliability of vital parts of energy infrastructure in Hungary: both high voltage lines and gas storage equipment. The efficient performance of these facilities and their adjustment to the increasing demand for supply are important for strengthening the competitiveness of the Hungarian economy and creating new employment opportunities.
In 2014, the Bank granted intermediated loans amounting to EUR 350 million to three partner financing institutions operating in Hungary. These credit lines were granted in application of the EIB’s priority of supporting Europe’s SMEs and helping to reduce the impact of the last economic crisis.
In 2014 the EIB provided EUR 184 million to co-finance with EU funds the rehabilitation of the railway sector, which will co-finance with EU funds projects with a total cost of EUR 1.2 bn. The individual sub-projects are located throughout Hungary. They are focused on the rehabilitation and reconstruction of various TEN-T railway lines, purchase of 42 Electric Multiple Units for commuter railway traffic around Budapest and installation of a GSM-R system on certain TEN-T corridors. This project is contributing to improving the efficiency, comfort and safety of the railway system and will thus enhance the attractiveness of rail transport.
In 2014 the Bank supported innovation in Hungary through providing a EUR 33.7 million (HUF 10.4 billion) to finance the construction of a high-capacity laser research facility and installation of advanced laser technology equipment.
In addition, last year the Bank provided EUR 30 million to Pécs to finance the implementation of its urban development strategy, the objective of which is to make the city attractive for the local population, investors and visitors as well as to increase the level of economic development and the living standard.