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The European Investment Bank (EIB) is lending EUR 400 million to Hungary to co-finance priority projects fostering rural development that receive support from the European Agricultural Fund for Rural Development within the programming period 2014-2020.

Mr Vazil Hudák, EIB Vice-President commented: “The EIB’s loan will co-finance projects with a total value of EUR 4 billion. This will help safeguard and create jobs in rural areas in the agri-food production and processing sectors, forestry and rural tourism and service provision. EIB funding will help to increase people’s quality of life by improving the environment and food security and strengthening the competitiveness of Hungary’s economy, particularly in the less developed regions.”

EIB funding will support investments in physical assets at the farm and downstream processing and distribution levels that aim to enhance competitiveness, add value to primary producing and promote environmentally-sound production. The loan will also support the forestry sector and rural infrastructure development investments.

The EU bank has a long history of very fruitful cooperation with Hungary. For example, in 2015 the EIB provided loans totalling EUR 1.0 billion in co-financing with EU funds to support projects with total costs of EUR 23.7 billion, helping to increase the capacity to absorb EU grants in Hungary. The combination of EIB loans and EU grants enables the country to meet its national strategic priorities – improving the everyday life of citizens by boosting labour productivity, promoting inclusive economic growth and increasing the number and quality of jobs.