Hungary signed an EUR400m loan agreement with the EIB, the EIB announced yesterday. The funds will be provided for national co-financing of EU-funded rural development projects under the 2014-2020 program period. This will provide support to projects with a total value of EUR4bn, helping to protect and create jobs in rural areas, EIB vice president Vazil Hudak said. The EIB loans will be used to finance investments in physical assets in farms and food processing as well as distribution, which aim to foster competitiveness, add value to primary production or promote environmentally-sound production. Other eligible investments included projects in the forestry sector and rural infrastructure.
The EIB lent EUR1.0bn to Hungary in 2015, helping to finance EU-funded projects worth a total of EUR23.7bn.