Hungary offers €510-M credit for businesses, water cleanup grant
HUNGARY has offered the Philippines a credit facility for private businesses as well as a grant to finance a feasibility study to clean up Laguna de Bay and Manila Bay, the Department of Agriculture said.
Agriculture Secretary Emmanuel F. Piñol said that the Hungarian government, through the Hungarian Export-Import bank, has allocated €510 million for a private sector loan facility, and €20 million for the feasibility study.
Hungarian Foreign Minister Peter Szijjarto said that the offer is expected to strengthen ties with the Philippines, as the country shifts the focus of its foreign policy to the east.
Mr. Szijjarto also offered 40 graduate study scholarships for Filipinos in agriculture to be sponsored by the Hungrarian government and partly by the Food and Agriculture Organization (FAO).
Hungary said the offers have no attached conditions which would be perceived as interference in the internal affairs of the Philippines, according to Mr. Piñol.
“We respect the sovereignty of your country and you must be allowed to run your own affairs without interference from other countries,” he said.
The government last week rejected $278 million worth of aid from the European Union (EU) — on the recommendation of the Finance department — claiming that the European bloc cannot be given an opening to interfere in the country’s internal affairs, including human rights, labor policy, environmental protection, and good governance.
Foreign Affairs Secretary Alan Peter S. Cayetano said on Friday the Philippines could still accept the aid if the EU removed its conditions and started supporting the government.
In 2015, Philippine exports to Hungary amounted to $187 million, representing about 0.3% of the total exports to the European Union, according to data from the Philippine Statistics Authority. Imports from Hungary meanwhile totaled $12 million, giving the Philippines a trade surplus of $175.49 million.
The Board of Investments, the Trade department’s investment promotion arm, ranks Hungary as the Philippines’ 40th largest trading partner out of 226. In terms of exports it was 26th out of 213, and as a source of imports it was 63rd out of 206.