The National Bank of Hungary (NBH) and the European Investment Bank (EIB) signed an agreement on Thursday that the sides said will expand options for financing long-term green projects in the country. The agreement allows the EIB to provide more long-term loans in forints to the local economy, supporting sustainable economic growth, the post-pandemic recovery and climate action. The EIB will offer fixed-rate loans with terms up to 20 years to clients in Hungary and in return will provide the NBH with access to euros for their operations. “This cooperation will mitigate the exchange rate risk currently affecting Hungarian borrowers of loans in euro and allows more long-term investments in infrastructure, climate action, sustainable cities and regions, and environmental sustainability,” said EIB VP Teresa Czerwinska.
NBH deputy-governor Barnabás Virág called the agreement with the EIB “another important step towards supporting the financing of domestic green projects”. He noted that the central bank earlier launched the Green Mortgage Bond Purchase Programme and the Green Home Programme, in line with its green mandate. “Environmental sustainability considerations do not affect the general orientation of monetary policy,” he added.