The European Investment Bank (EIB) is providing two loans in Hungary:
- EUR 50 million to finance a more efficient and higher quality public administration. This will be achieved through the modernisation of the operation, procedures and processes of electronic public services based on staff development and utilisation of modern Information and Communication Technologies (ICT)
- EUR 100 million to support undertakings by the SME and Mid-Cap sector
EIB Vice-President László Baranyay commented on the state administration modernisation loan: “I very much welcome the fact that EIB funds are helping to improve public administration in Hungary by increasing its quality and efficiency. More citizen-friendly administrative services based on modern e-Government will without doubt strengthen the economic competitiveness of Hungary”.
The EIB loan backing an increased use of ICT and e-Government services will accelerate modernisation. In addition, efficiency gains in public administration will further develop and facilitate the use of public services, with positive implications also for the labour market in Hungary. This project will contribute to the implementation of the Electronic Administration and State Reform Operational Programmes within Hungary’s National Strategic Reference Framework for the EU programming period 2007-2013. The EIB loan will be combined with grants provided by the European Social Fund and European Regional Development Fund and national resources.
The EIB credit line of EUR 100 million is going to Magyar Export-Import Bank Zrt. (Eximbank), a national export-import bank contributing to the implementation of the Hungarian Government’s economic development policies by supporting export and import. This is the first EIB operation with this financial institution, which partly relies on intermediation through local partner banks to finance projects of the SME and Mid-Cap sector – the engine of growth and innovation in Hungary.
The EIB loan to Eximbank is being granted under the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs in order to mitigate the effects of the financial crisis. Those funds will support growth by enhancing long-term competitiveness through increased availability of long-term credit.