COVID-19 recovery support drives EIB Group investments in Hungary to record levels
The European Investment Bank Group provided €767 million in loans and guarantees to its clients in Hungary in 2020 - or 0.57% of Hungary’s GDP. The EU bank channelled the majority of the funds into faster COVID-19 recovery of Hungarian SMEs and mid-caps, as well as the recovery of the public healthcare sector from the pandemic.
The EIB also supported the Hungarian Government with loans covering Hungary’s participation in projects financed by the European Union and the modernisation of power distribution in south-east Hungary.
The two parts of the EIB Group, the European Investment Bank and the European Investment Fund, invested €757.5 million and €9.5 million respectively, making 2020 a record year for the EIB in Hungary in the past five years.
The EIB provided €275 million to unlock new sources of financing for the country’s SMEs available via Eximbank Hungary, the Hungarian Development Bank, SG Eszközfinanszírozás Magyarország Zrt. and SG Eszközlizing Magyarország Kft, and €120 million for modernisation of MVM’s power distribution network in south-east Hungary including the introduction of smart e-meters and modern bird protection measures. The EU bank lent an additional €200 million to the Government of Hungary for national participation in EU-financed projects. The loan will help support improvements in services, telecoms, education and urban development, and provide additional backing to Hungarian SMEs and mid-caps.
The EU bank invested €162.5 million to support AEEK, the national hospital management agency, and scale up the Hungarian healthcare sector’s response to the COVID-19 pandemic. The loan covered the procurement of medical supplies, personal protective equipment, and mobile units.
The EIF contributed to the local economy to the tune of €9.5 million by providing guarantees to local financial institutions, strengthening their ability to fuel the economic and social development of Hungary without jeopardising the stability of the national financial sector.
