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MNB signs agreement with EIB

MNB

Photo by Adriana Iacob/Shutterstock.com

The National Bank of Hungary (MNB) and the European Investment Bank (EIB) signed an agreement that the sides said will expand options for financing long-term green projects in the country, according to portfolio.hu.

The deal allows the EIB to provide more long-term loans in forints to the local economy, supporting sustainable economic growth, post-pandemic recovery, and climate action.

The EIB will offer fixed-rate loans with terms up to 20 years to clients in Hungary and, in return, will provide the MNB with access to euros.

"This cooperation will mitigate the exchange rate risk currently affecting Hungarian borrowers of loans in euro and allows more long-term investments in infrastructure, climate action, sustainable cities and regions, and environmental sustainability," said EIB VP Teresa Czerwinska.

MNB deputy governor Barnabás Virág called the agreement with the EIB "another important step towards supporting the financing of domestic green projects."

He noted that the central bank earlier launched the Green Mortgage Bond Purchase Program and the Green Home Program, in line with its green mandate. "Environmental sustainability considerations do not affect the general orientation of monetary policy," he added.

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