In 2018, the local government entered into a HUF 44 billion loan agreement to finance tasks related to the development of the industrial area in the North-West Economic Zone. Of this, HUF 38 billion was used by the end of 2019. The earnings from the sale to the investor were used by the municipality for prepayment. The city’s debt stock has thus fallen to HUF 3.1 billion, of which the municipality wants to spend HUF 2 billion on the development of the Southern Economic Zone in Debrecen. As the loan redemption came on more favorable terms, the Finance Committee also supported the proposal.
In the Southern Economic Zone, industrial and economic development has been possible on 99 hectares thus far. The companies that have settled here include the international corporations (Krones, Vitesco, Deufol) and Hungarian (ITK, BHS) companies. These companies will invest a total of HUF 120 billion and create nearly 3,000 new jobs in the coming years.
The total estimated gross cost of the planned developments in the Southern Economic Zone is approximately HUF 50 billion, and will be realized in the investment of the local government and NIF Zrt. between 2021 and 2024.
The conclusion of the new loan agreement is subject to the prior consent of the government. After the decision of the general meeting, but before the signing of the new loan agreement, the local government is obliged to request prior consent of the government through the Hungarian State Treasury. Once consent is given the government will bring to conclusion the new loan agreement planned by the local government. It will be published in the Hungarian Gazette.
