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Hungary inks EUR 225 mln credit deal with EIB

Hungary has signed a EUR 225 million credit agreement with the European Investment Bank (EIB) covering co-financing for European Union-funded developments, national news wire MTI reported.   

The agreement, signed Thursday by Minister of Finance Mihály  Varga and EIB Vice-President Vazil Hudák, will contribute to the implementation of transport infrastructure, environmental and energy efficiency investments.

The credit may be used over the next three years for co-financing of EU-funded projects such as upgrading Budapestʼs waterworks, building a train connection between the center of the capital and Ferenc Liszt International Airport, and the extension of motorways to the countryʼs border, Varga said. 

The credit agreement is part of a EUR 1 billion credit line from the EIB for which Hungary signed in 2015. Hungary earlier used EUR 500 mln of the amount to finance the construction of a bridge spanning the Danube at Komárom, the renovation of the M15 motorway connecting Budapest and Bratislava, and an upgrade of a north-south rail line south of the capital.

In a separate announcement, the EIB said it also signed agreements in Budapest on Thursday on a EUR 25 mln loan to Budapest Bank to finance SME lending, and a EUR 50 mln loan to state-owned student loan provider Diákhitel.  

Another agreement is being signed with the Hungarian Development Bank (MFB) to help the lender establish an advisory unit to support clients when preparing and implementing investment plans, the EIB said. This agreement is backed by the European Investment Advisory Hub (EIAH), the advisory pillar of the European Commissionʼs Investment Plan for Europe, it added.

In addition, as reported Thursday, the EIB also signed a EUR 100 mln 15-year credit agreement with the state-owned Hungarian Electricity Works (MVM), to be used to invest in the network of Mavir, the Hungarian transmission system operator (TSO).