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First EBRD co-financing agreement with Japan Exim Bank will help improve Hungarian telecommunications
The European Bank for Reconstruction and Development and the Export-Import Bank of Japan today signed an agreement for their first co-financing operation by which, as co-lenders, they will provide DM 185 million to the Hungarian Telecommunications Company to improve the accessibility and quality of telecommunications in Hungary.
Under this co-financing arrangement, EBRD will lend DM100 million and EXIM-Japan DM85 million to HTC as co-lenders on a parallel basis. Originally, by an agreement signed in March 1992, the EBRD was the sole lender of DM 185 million.
Mario Sarcinelli, Vice President of the EBRD said: "It is one of our goals to act as a catalyst to encourage foreign capital for investment in the countries of central and eastern Europe. We have succeeded today, thanks to the cooperation of EXIM-Japan and the Hungarian Telecommunications Company, to fulfil this objective. With our co-financing agreement, EXIM-Japan will take over the financing of an important part of the project to improve the telecommunications system in rural areas in Hungary while the EBRD loan will cover metropolitan Budapest."
Earlier today in Japan, a loan agreement for up to Y6,288 million (DM 85 million) was signed between EXIM-Japan and HTC.
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