Bank support for the success of town development projects

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An agreement signed yesterday between OTP Bank and the National Association of County Local Governments is looking to contribute to the success of the next seven years of settlement development in Hungary, according to a press release sent to the Budapest Business Journal.

From road development to the expansion of crèches, the HUF 1.8 trillion that Hungary can benefit from in the upcoming EU budget cycle until 2027, under the Operational Program for Regional and Local Development Plus (TOP Plus), can be used in a number of areas.

In order to bring aboard a stable financial background and experience for successful tenders, the National Association of County Local Governments (MÖOSZ) decided to sign a partnership agreement with OTP Bank.

"It is of utmost importance to us that the development projects implemented with EU funds tangibly improve Hungary's economic opportunities and competitiveness. That is why we have undertaken, in cooperation with MÖOSZ, to supplement every HUF 100 of EU funds with HUF 25 of our own funds, if necessary, for a total of up to HUF 460 billion. Our many years of experience in complementing tender funds and preparing projects, as well as this contribution, can guarantee that we will draw as much EU funding as possible this cycle," said László Wolf, deputy CEO of OTP Bank, at the signing ceremony.

The partnership between the county municipalities and OTP Bank is not new: the credit institution and 11 county municipalities have been cooperating for years in the field of regional and urban development.

Since the start of the previous EU cycle, the credit institution has provided additional funding for almost 400 municipal developments, in addition to EU subsidies, amounting to some HUF 280 billion. 

"Based on the experience of the past years, we decided to expand and strengthen our partnership with OTP Bank. Our common goal is to stimulate the growth of local economies and strengthen the competitiveness of rural areas through TOP Plus funds," said Zoltán Pajna, president of the National Association of County Local Governments.

In the agreement, OTP Bank has agreed to provide additional funding and to monitor the implementation of the county programs in order to assess and analyze if additional funding is needed for their implementation. This will ensure that local authorities can complete the projects on time, even in the event of unforeseen difficulties.

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