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Japan EXIM Bank to co-finance Hungarian telecommunications project with European Bank
By a memorandum of understanding signed today at the European Bank for Reconstruction and Development, the Export-Import Bank of Japan is expected to provide a loan of DM 85 million to the Hungarian Telecommunications Company.
At the suggestion of the European Bank, Hungarian Telecommunications Company Ltd. has requested that EXIM-Japan assist in financing part of a project designed to improve the accessibility and quality of telecommunications in Budapest and rural areas of Hungary. The European Bank entered into a loan agreement with Hungarian Telecommunications Company in March 1992, under which the Bank is lending DM 185 million for the project. Part of this loan will now be taken over by EXIM-Japan which will finance the village programme portion of the project to improve telecommunications in rural areas.
The European Bank and EXIM-Japan are in the process of negotiating a co-lender's agreement which will provide that the items financed from the loans will be co-financed on a parallel basis. They will advise each other of matters concerning the implementation of the project.
Signing on behalf of the four parties were: Mitsuhide Yamaguchi, Governor of the Export-Import Bank of Japan; Ivan Szabo, Hungarian Minister of Finance; Pal Horvath, General Manager of Hungarian Telecommunications Company; and Jacques Attali, President of the European Bank.
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