Hungary to extend $52m credit line to Rwanda

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The Hungarian Foreign Affairs Minister Péter Szijjártó is scheduled to visit Rwanda in November for an official visit during which the two countries will sign a tied credit line of $52M.

It was gathered that Szijjártó was in the country this week for the just-concluded African Union and European Union ministerial meeting.

He had informed The New Times that he will be returning to Rwanda next month for the activation of the agreement.

The Hungarian diplomat explained that the $52M financing is a soft loan at zero interest payable in 20 years with an 8 year grace period.

“I will be back in November to launch a tied Aid programme between Rwanda and Hungary. This means that the Hungarian Eximbank which is under the Foreign Minister’s portfolio is ready to provide $52M credit programme. It is a soft loan, 0 per cent interest, to be paid in 20 years and the first 8 years will be grace period,” he said.

“The terms for providing the credit is that there should be at least 50 per cent of Hungarian contribution which means that if Rwanda picks a project or projects in Agriculture, Water Management, digitization or education, half of the project has to be completed by Hungarian companies while the other half Rwandan companies,” he added.