Brussels, July 10 (QNA) – The European Union has approved a €10bn ($11.4bn) recovery funding package for Hungary, with the money to be provided through a combination of grants and loans.
In a statement on Friday, the European Commission said 6.5bn of the package would be made available as grants, while a further €3.5bn would be offered in loans.
The Commission said, as with all national recovery plans, payments would be linked to the fulfillment of agreed reform and investment milestones.
It added that member states had approved Hungary’s reform and investment program, which includes measures aimed at strengthening anti-corruption efforts and improving transparency in the management of public funds and public procurement.
The EU has withheld funding from Hungary in recent years over concerns about what it has described as breaches of the rule of law and the bloc’s fundamental values under the government of nationalist Prime Minister Viktor Orban.
The announcement comes as the incoming government of Prime Minister Peter Magyar has pledged to adopt a different political approach and hopes to secure the swift release of the funds.
The EU’s Recovery and Resilience Facility was established during the Covid-19 pandemic to help member states finance reforms and investments to support their economic recovery. (QNA)