A loan totalling €100 million (£74m) has been granted to Budapest to support improvements in the fields of energy efficiency and environmental protection.
The cash will also be used by the Municipality of Budapest to implement schemes in other areas such as waste, water, renewables and regeneration.
The projects are expected to contribute to the “balanced and sustainable growth” of the Hungarian capital and is part of its Integrated Urban Development Strategy, according to the European Investment Bank (EIB).
László Baranyay, EIB Vice President said: “The EIB will provide favourable funding conditions and liquidity for a long tenor supporting priority investments under the Hungarian capital’s Integrated Urban Development Strategy.
“This is vital for the city’s continuing sustainable social and economic development, strengthening its competitiveness through the improvement of its attractiveness to investors, increasing the quality of life and upgrading the urban environment.”