Hungary's gov’t plans to finance cronies from European Investment Bank loan, Democratic Coalition says

There is good reason to assume that the government will use a new loan from the European Investment Bank (EIB) to finance its "cronies" instead of helping finance the local part to EU-funded investments, the Democratic Coalition (DK) said on Wednesday.

The government signed for a 500 billion forint loan from the EIB a year and a half to two years ago, of which 150 billion forints has been spent so far and a second instalment is now being drawn, deputy party leader László Varju told a press conference. He referred to the second instalment of a general 1.5 billion euro credit line approved by the EIB in 2015 for Hungary to refinance the Hungarian budgetary contribution of EU funding.
Varju said a recently started audit by the European Commission in Hungary has revealed overcharging and irregularities in public procurements, which could result in the suspension of funds. In order to act before this happens, the government has decided to "try to flee ahead of the event and get some money for its cronies" in order to be able to pay works already invoiced, Varju added. The government fears that the EC's audit could reveal the "shady deals of the prime minister and his cronies", Varju stated.

Last Updated on Thursday, 23 November 2017 16:20