On 14 June 2012 Mr. György Matolcsy, Minister for National Economy, signed in Budapest a project finance contract of 63 million EUR with the Vice President of the European Investment Bank (EIB), Mr. Wilhelm Molterer.

Today the minister for national economy and the vice president of the EIB signed a project finance contract of 63 million EUR which -- via the favourable financing conditions of budgetary expenditures -- will significantly contribute to the rehabilitation of the area ravaged by the red sludge catastrophe of 2010 and the investments aimed at the prevention of damages caused by flooding and extreme climate conditions.

The relationship between Hungary and the EIB span more than two decades, and in the meantime the bank has provided funding of almost 14.6bn EUR for the financing of several Hungarian development projects. Out of international development institutions it is the European Investment Bank (EIB) that participates most actively in project financing in Hungary. In the past two years agreements totaling more than 1.1bn EUR have been concluded with the EIB for lending for state project financing and 1.1bn EUR have also been drawn on the basis of existing government loan contracts. The domestic investments completed via EIB support were mainly related to the updating of the industry, energy sector, telecommunication and education. In addition to providing favourable financial conditions, the EIB plays a key part in improving the absorption capacity of EU-funded investment projects and thereby in boosting the economy as well.

(Ministry for National Economy)