EIB grants EUR 400 mln credit for rural development

MNB

Minister for National Economy Mihály Varga and European Investment Bank (EIB) Vice President Vazil Hudák signed an agreement on Thursday for a EUR 400 million line of credit from the EIB for the implementation of strategic rural development projects in Hungary, state news agency MTI reported.

The EIB loan will be used to co-finance Hungarian central budget-funded projects within the rural development program, supporting the production of higher value-added products and the development of businesses in the fields of agriculture, forestry and the food sector, Varga said.

The EIB supports traditional economic sectors with the aim of helping to safeguard and create jobs in rural areas, to reduce regional differences and to improve the quality of life for people, said Hudák.

The EIB loan will co-finance projects with a total value of EUR 4 billion, the EIB said on its website.

Last year, the EIB provided Hungary with EUR 1.0 bln in loans to co-finance EU-funded projects worth EUR 23.7 bln.

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