According to a report by state news wire MTI, the total amount of funds claimed in the plan is EUR 17.4 billion, which exceeds the EUR 16.2 bln SAFE limit previously earmarked for the country.
The higher claim results from the real, detailed development needs of the Hungarian defence forces and related sectors, the ministry said. Based on Hungary’s geographical location, its stabilizing role in the region and its commitment to its NATO and EU membership, a significant share of SAFE funds is justified and well-founded. In addition to developing national defence capabilities and boosting the domestic defence industry, the program can significantly contribute to strengthening domestic supplier and innovation networks, increasing strategic autonomy and reducing the interest expenses of the budget.
The SAFE program offers credit that can be taken out gradually at an interest rate that is expected to be about 200 basis points more favorable than market financing options, which could mean annual interest savings of tens or even hundreds of billions of forints for public finances in the long term, even through the replacement of foreign currency loans, the ministry said.
Throughout the entire process of preparing the National Investment Plan submitted in the framework of the SAFE program, Hungary held regular consultations with experts of the commission in Budapest and Brussels.
The government aims to spend the SAFE funds to strengthen Hungary’s defense capabilities and develop its defense industry, develop dual-purpose infrastructure, and improve the sustainability of public finances in the long term, the ministry said.
Following the commission’s assessment and the council’s decision, the credit agreement could be concluded at the beginning of next year. Based on the current schedule, the advance payment of 15pc of the support amount could arrive in the spring of 2026, the ministry said.
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