EIB and Hungary sign EUR 150m loans for schools and sports infrastructure

The EIB loan complements the European Structural and Investment Funds efforts of the European Union to improve educational infrastructure in Hungary; half of the projects will be located in regions classified as less developed.

European Investment Bank and the Ministry of Finance of Hungary signed today in Budapest the EUR 150 million loans for construction and rehabilitation of eight schools, 16 classroom extensions and 20 new sports halls in schools, as well as the construction of 26 swimming pools and 17 larger gymnasiums in public schools across the country. To date, the EIB invested EUR 911 million in the education sector in Hungary alone.

Overall, the EIB loan will facilitate new capacities in primary and secondary education and in particular will allow pupils currently schooled in mobile containers to move into new, modern school buildings; investments will increase the social opportunities and future employability of children. Access to modern sports infrastructure will also contribute towards better public health in Hungary by allowing young Hungarians to meet the sport education requirements of the national curriculum and engage in popular sports.

The loan will reduce overcrowding in schools, improve teaching equipment and subsequently improve the educational performance of young Hungarians, offering effective education regardless of the social background as well as extending equal opportunities for quality education.

On top of increasing the social inclusiveness of public schools, the major provider of education in Hungary, the EIB loan will support them to adapt effectively to local demographic changes, reduce energy consumption and contribute towards a sustainable environment in Hungary and the European Union.

Lilyana Pavlova, Vice President of the EIB said: "The EIB continues to support Hungary as it addresses major educational challenges and works to develop a modern educational system capable of providing functional education to the country`s youth. Good, quality education is increasingly important for improving the living conditions and economic and social opportunities of youth, which is why the EIB is happy to support this project. Hungary`s contribution to the world`s sports and science is amazing and I sincerely hope this loan will help launch a new generation of Hungary`s global sports and science champions"

Mihály Varga, Hungarian Minister of Finance said: "I highly appreciate the work of the EIB and its continuous commitment to the priorities of the Hungarian Government to improve the country's educational infrastructure, in particular, the construction and expansion of infrastructure in schools where the existing facilities are outdated and inadequate. This loan will contribute to the construction of 8 new schools in Hungary and by the means of refurbishment and establishment of sports halls and handball halls, improved access to sports facilities will enable daily physical education of pupils."

Ongoing Investments in Hungarian education and related sports infrastructure

This loan is a follow-on of a similar program signed in 2016 worth HUF 15 billion (cca. EUR 48 million); its implementation allowed pupils to get access to modern sports facilities throughout the country. Like in the first part, the EIB is expected to co-finance the project with a 50% share.

The EIB loan complements the European Structural and Investment Funds efforts of the European Union to improve educational infrastructure in Hungary; half of the projects will be located in regions classified as less developed.

With a focus on school infrastructure in a country with strong needs in education investments, the Project aims to promote progress towards the UN Sustainable Development Goal (SDG) 4 on education, which calls to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.