One agreement will provide the capital with 200 million euros for public transport investments while the other will provide 100 million euros for other city development projects.

After signing the agreement, Bagdy said the loans will play key roles in allowing the capital to mobilise its own funds while also receiving EU and government funding over the bloc’s next funding period.

The EIB vice president said the maturity of the loans is 30 years and 25 years, respectively, with a 6-year interest-only payment period for each. Baranyay added that the loans’ interest rates are “quite favourable”.

The funds will be available to the municipality as early as the start of next year.

He said the loans would complement the city’s EU funding. Baranyay said the transport investments and other development projects would improve the quality of life of every Budapest resident and contribute to the city’s economic growth.

According to the bank’s press release, it will assess the projects the capital wishes to fund from the loan before approving them.

The EIB said the 100 million euro loan can be spent on projects dealing with environmental protection, energy efficiency, sewage treatment, waste management and city rehabilitation.

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