“The Hungarian State has concluded a 50-billion-forint (EUR 150 million) loan agreement with the European Investment Bank in the interests of the development of Hungarian public education institutions and school sports facilities”, Minister of Finance Mihály Varga announced after signing the agreement with EIB Vice President Lilyana Pavlova.

“8 new schools will be built, 16 institutions will be refurbished and over 60 sports facilities for young people will be established within the framework of the cooperation”, the Minister highlighted.

DownloadPhoto: Ministry of Finance

Mr. Varga pointed out that the European Investment Bank is an important partner to Hungary with relation to both development and financing. “These resources are enabling the long-term, low-interest financing of investment projects aimed at the realisation of economic development goals, while also enabling the more favourable structure of sovereign debt”, the Minister explained, highlighting the fact that as a non-profit organisation, the financial institution is able to provide loans with conditions that are extremely favourable in international capital market comparison.

DownloadPhoto: Ministry of Finance

Mr. Varga explained that as part of the loan, the construction and development of school gymnasiums, training pools and classrooms will also be realised, which will contribute to the everyday physical education of schoolchildren. “The construction of schools and focusing attention on the education of young people is essential to the development of a society, and accordingly the government is handling such investment projects as a priority”, he stated.

The Minister told the press that Hungary had first concluded a loan agreement for the development of educational institutions with the European Investment Bank in 2016 at a value of 15 billion forints (EUR 45 million). “Hungary successfully realised these development projects with the refurbishment of over 80 educational institutions and the establishment of some 50 sports facilities, and accordingly the financial institution felt it was worth continuing the programme”, he explained.

Lilyana Pavlova told reporters that the bank will continue to support Hungary with relation to the development of the education system, and highly appreciates the fact that Hungary is contributing to the proliferation of sport and science, and the improvement of their conditions.

(Ministry of Finance/MTI)