The Council of Europe Development Bank (CEB) and Hungary’s Ministry of Finance have signed a €152 million loan agreement to provide medical services to those affected by COVID-19. This additional financing complements a loan approved in 2020 to support the country’s pandemic response, bringing the total amount to €327 million.
Despite a well-advanced vaccination drive funding for additional preventive and diagnostic supplies remains an issue for Hungary, with budgetary spending for COVID-19 measures in 2021 estimated at more than half a billion euros. The additional funding from the CEB will cover eligible budgetary health expenditures and essential measures foreseen under the state of emergency, including medical supplies needed in the continuous fight against the pandemic.
The CEB’s Administrative Council had approved an initial loan request of €175 million to Hungary in April 2020. The entire amount was rapidly and completely disbursed to partially cover COVID-19 related expenditures incurred during the fiscal year 2020.