European Investment Bank invests a record amount in Hungary
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 €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 €880 million.
The EIF invested €11 million in the local economy — €5 million in equity and €6 million in guarantees to local private and public banks. Since 2017, the EIF has invested some €306.5 million — in equity (€120.5 million), guarantees (€185.4 million) and inclusive finance (€0.6 million).
The EIB Group’s activities in Hungary channelled €701 million for faster recovery of the Hungarian economy and fuelled the public sector’s response to COVID-19.
In 2021 the EIB provided €300 million to the Government of Hungary to co-finance the national Home Renovation Programme set up to improve the energy efficiency of homes.
The EU bank provided €150 million to Diákhitel to ensure Hungarian students have easier access to student loans.
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 €146 million, boosting the effectiveness of its response to the pandemic by financing the acquisition of vital equipment and materials.
The EIB signed a €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 €30m loan to the Lasselberger Ceramics company.
Over €10 billion invested in Hungary in the past decade
Over the past ten years, the EIB has invested some €10.4 billion in Hungary, the majority (€2.31 billion) in credit lines for local SMEs and mid-caps.
Between 2011 and 2021, the EIB invested €1.76 billion in development of the country’s transport sector and a further €1.22 billion in the national healthcare sector.
An additional €1.11 billion was invested in the country’s education sector, €976.7 million in the services sector, €800 million in agriculture, €776 million in the energy sector, €605 million in industry and €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 €1.05 billion in long-term funding from the EIB.
Cover photo: Getty Images
