IIB supported the tourism industry in Hungary

IIB supported the tourism industry in Hungary

On April 15, 2021, within the framework of a previously concluded loan agreement International Investment Bank issued the first tranche for the construction of the BalaLand Family Hotel & Resort, and BalaLand Family Park, a large hotel complex and recreation park on the shores of lake Balaton.

For the implementation of this significant initiative IIB provided a loan of amount HUF 10 billion (over 27 million euro in equivalent) with a tenor of 18 years.

The Hungarian State Agency for Tourism Development also participated in financing of the project in a form of grant agreements between Kisfaludy2030 Touristic Development Nonprofit Zrt. and the developer.

The BalaLand project, which is being built near the city of Szántód, an important transport hub of the “Hungarian Sea”, involves the construction of a multifunctional lakeside family resort with more than 100 rooms, restaurants and SPA, as well as the all-season kids theme park and aqua centre.

A qualitatively new level of service will increase the attractiveness of Hungary and lake Balaton for both domestic and foreign tourists.

“It is extremely important that this deal contributes to the solution of such priority tasks for Hungary as creating new jobs and improvement of the well-being of the population of small towns and rural regions. It is also noteworthy that it is, in fact, an example of blended financing carried out by a development institution in cooperation with private business and state capital." - stressed Georgy Potapov, Deputy Chairperson of the IIB Management Board, in charge of Lending and Investments.

Over the past year, the Hungarian loan and documentary portfolio of the Bank has more than doubled and at the end of the first trimester of 2021 amounted to over 155 million euro. Since 2015, when Hungary re-joined the Bank, IIB has invested about 400 million euro in its economy. As now Hungary has the second largest share in the IIB paid-in capital exceeding 17%.