Hungary signs financing deal with Norway for NASAMS contract

Trade

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Hungary has signed an agreement for EUR 348.5 million in financing from Export Credit Norway (ECN) and the Norwegian Export Credit Guarantee Agency (GIEK) that will cover 85% of the EUR 410 mln cost of the NASAMS air defense missile system the country is getting from Norway's Kongsberg, the Finance Ministry said on Wednesday, according to a report by state news wire MTI.

The credit will mature in 8.5 years after the entire amount is called down, the ministry said. The financing costs are low, the run is favorable for the maturity profile of Hungary's state debt and the credit diversifies government debt management, it added.

Hungary signed the contract on the NASAMS system in November 2020. Delivery of the system, used widely among NATO members, will start in 2023. The NASAMS will replace a more than 40-year-old Soviet missile system.

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