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EBRD supports modernisation of Hungarian telecommunications
The European Bank for Reconstruction and Development (EBRD) is providing US$ 65 million of loans and equity to Digitel 2002 Rt for modernisation of telecommunications in the regions of Vác and Gödöllö, in northern Hungary.
Clell Harral, Director of the EBRD's Telecommunications team, said: "The modernisation and development of an efficient telecommunications system will greatly benefit northern Hungary. The project will considerably improve the telephone network and services in the region. State-of-the-art technology will mean that the quality, availability and reliability of the services will be brought to world standards." He continued: "By supporting infrastructure development in northern Hungary the EBRD is also fostering the growth of private enterprises in these regions."
The EBRD loan is US$ 62 million, of which US$ 42 million has been syndicated to Banque Nationale de Paris (BNP) and Dresdner Bank Luxembourg S.A.
Digitel 2002 Rt, which started operating in December 1995, will provide telephone services in the two regions. The total project cost is US$ 190 million. The company is majority owned and controlled by the French Compagnie Générale des Eaux (CGE), in partnership with Tal-Giltek Ltd., an Israeli company.
Digitel 2002 Rt is the second CGE subsidiary to receive financing from the EBRD. On 21 December 1995, the EBRD and the same syndicate consisting of BNP and Dresdner signed a total commitment of US$ 78 million to Déltáv Rt, which provides telephone services in the regions of Szeged and Szentes in south-eastern Hungary.
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