Budapest/Luxembourg, 12 January 2006
Hungary: EUR 190 million for modernisation of telecommunication services
The European Investment Bank (EIB) lends EUR 190 million for providing telecommunication broadband infrastructure in Hungary.
The broadband technology allows the delivery of entirely new type of media services and communications-oriented applications. It increases access to modern residential and business telecommunication services provided in higher speed and increased quality.
The loan will finance the extension of the geographical coverage of the existing Hungarian broadband services and the increase in the number of broadband connections, and their capacity and performance. Magyar Telekom, the major fixed-line and mobile phone Company in Hungary, is the project promoter.
This modernisation of the telecommunication network is in line with the Hungarian Government’s Information Society Strategy of 2004 focused on the diffusion and increase of quality of the information and communication technologies, as it will increase access to the Internet despite the recent decline of the number of fixed-lines in Hungary.
The EIB supports projects fostering the establishment of the knowledge-based society in Europe with the aim to create a competitive economy capable of sustainable economic growth with more and better employment opportunities. Access to modern telecommunication services is an indispensable part of this process.
The EIB, the European Union’s long term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Outside the Union the EIB implements the financial components of agreements concluded under European development aid and cooperation policies.
Support for the establishment of a knowledge-based society in Europe is a lending priority for the EIB. It is based on the Lisbon Strategy, which aims to build a European economy based on knowledge and innovation. In this regard, the Bank’s integrated approach is focused on supporting links between knowledge creation and the market and it covers projects from education to research, development and innovation, and the transformation of innovation into investment to increase productivity and strengthen the competitiveness of the EU economy.