The European Investment Bank Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), increased its investments in Hungary in 2021 and provided EUR 891 million to the local economy, a record volume of investment in the past five years. The EIB increased the volume of its operations in Hungary for the fifth consecutive year with lending of EUR 880 million.
The EIF invested EUR 11 million in the local economy — EUR 5 million in equity and EUR 6 million in guarantees to local private and public banks. Since 2017, the EIF has invested some EUR 306.5 million — in equity (EUR 120.5 million), guarantees (EUR 185.4 million) and inclusive finance (EUR 0.6 million).
The EIB Group’s activities in Hungary channelled EUR 701 million for faster recovery of the Hungarian economy and fuelled the public sector’s response to COVID-19.
EIB Vice-President Teresa Czerwinska, who is in charge of operations in Hungary, pointed out that "the EIB Group has again proven that we are a reliable partner for Hungary even in the most difficult of times. Our record high results for 2021 are proof of our commitment to the social and economic development of Hungary. They also testify to our determination to ensure this development is long-term, sustainable, green and inclusive. I am particularly proud of our contribution to COVID-19 recovery in the country. We have provided EUR 701 million to sustain Hungarian businesses and healthcare system during these difficult times. I would like to thank our partners in the Government and in the public and private sectors for the opportunity to help make Hungary even stronger.”
Support for an energy independent, efficient and green Hungary
In 2021 the EIB provided EUR 300 million to the Government of Hungary to co-finance the national Home Renovation Program set up to improve the energy efficiency of homes. The operation supported a reduction of energy demand and improved both the reliability and security of supply in the country. In parallel, financing will help reduce greenhouse gases and alleviate air pollution. Energy efficiency investment will generate local and regional economic activity and thus increase employment.
This is the first loan signed in Central and South-Eastern Europe in line with the green loan principles established by the Loan Market Association strengthening the EIB’s credentials as the EU climate bank. The loan will help accelerate Hungary’s green transformation into a carbon-neutral economy, as well as plans under the European Green Deal to transform the European Union into a carbon-neutral economy by 2050. The EIB financing will also help achieve the goals set in the European Commission’s Renovation Wave for Europe initiative.
Support for a modern, competitive workforce in Hungary
The EIB invested in seven operations in the country. The EU bank provided EUR 150 million to Diákhitel to ensure Hungarian students have easier access to student loans; the loan also supports post-secondary vocational education, training programs and adult learning programs and, in turn, the development of a modern, competent and competitive workforce for the Hungarian economy. This is the sixth such operation in support of Diákhitel to which the EIB has provided EUR 687 million in total over the past few years.
EIB support for faster COVID-19 recovery of Hungary
As part of the EIB’s support for Hungary in mitigating the effects of the COVID-19 pandemic, the EIB supported Hungary’s public sector to the tune of EUR 146 million, boosting the effectiveness of its response to the pandemic by financing the acquisition of vital equipment and materials.
The EIB signed a EUR 50 million operation with UniCredit Bank to unlock new sources of financing for Hungarian SMEs struggling with the effects of the COVID-19 pandemic. The Bank has assisted the private sector in the modernisation and digitalisation of the production facilities – including EUR 30m loan to the Lasselberger Ceramics company.
Over EUR 10 billion invested in Hungary in the past decade
Over the past ten years, the EIB has invested some EUR 10.4 billion in Hungary, the majority (EUR 2.31 billion) in credit lines for local SMEs and mid-caps. Between 2011 and 2021, the EIB invested EUR 1.76 billion in development of the country’s transport sector and a further EUR 1.22 billion in the national healthcare sector. An additional EUR 1.11 billion was invested in the country’s education sector, EUR 976.7 million in the services sector, EUR 800 million in agriculture, EUR 776 million in the energy sector, EUR 605 million in industry and EUR 571 million in water and wastewater management. Other sectors of the Hungarian economy have also benefited, with waste management, telecoms, composite infrastructure and urban development receiving over EUR 1.05 billion in long-term funding from the EIB.
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