Hungary has signed an agreement to take out two loans worth a combined €620 million from the European Investment Bank (EIB).Finance Minister János Veres and EIB vice president Ivan Pilip signed the agreement in Budapest on Thursday. The state will take out a €300 million credit line to pay for projects supported with the EU's Cohesion Fund during the 2007-2013 EU budgetary period. The other loan, of €320 million, will be used to continue work on the M3 motorway.
The EIB, owned by EU members, can lend at lower rates than most commercial banks because its AAA credit rating allows it to raise funds more cheaply. “We can lend in a way that it doesn't put too much of a burden on the budget,” EIB Vice President Ivan Pilip said at the press conference.