The European Investment Bank (EIB) has signed two loans with the Municipality of Budapest valued at EUR 300 million. EUR 200 million, the first tranche of the approved loan of EUR 350 million,will be used to finance priority investment schemes in the areas of public transport and road networks. The loan provides an opportunity to finance the improvement of Budapest’s transport infrastructure, including the reconstruction of metro and suburban railway lines, tram and trolleybus infrastructure, road and bridge rehabilitation and rolling stock-related investments relevant for improving the quality of public transport services.
Another EUR 100 million represents the first part of the EIB loan of EUR 200 million, to support improvements in the fields of Budapest’s urban renewal and regeneration, energy efficiency increase and environmental protection.
Mr László Baranyay, EIB Vice-President, commented: “The EIB will provide favourable funding conditions and liquidity for a long tenor supporting priority investments under the Hungarian capital’s Integrated Urban Development Strategy. This is vital for the city’s continuing sustainable social and economic development, strengthening its competitiveness through the improvement of its attractiveness to investors, increasing the quality of life and upgrading the urban environment”
Both operations form part of the city’s Integrated Urban Development Strategy and are therefore in synergy and will contribute to the balanced and sustainable growth of Budapest.