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Hungary provides US$40m loan for agriculture
The Hungarian government has agreed to provide Laos with a new package of financial assistance to boost agriculture development in the country.
Hungarian Deputy Minister of the National Economy Mr. Balazs Botos paid a courtesy visit to Standing Deputy Prime Minister and Minister of Foreign Affairs Dr Thongloun Sisoulith in Vientiane on Tuesday to inform him about cooperation initiatives between the two nations.
According to a press release issued by the Lao Ministry of Foreign Affairs, Hungarian and Lao officials have agreed to sign the financial cooperation agreement in the near future once the relevant legal documents are finalised.
Under the agreement, the Hungarian government will provide an interest free loan of US$40 million to the Lao government to boost agriculture development. The loan period is 18 years.
The Hungarian government has already provided a US$8.6 million loan for the Lao government to develop the agriculture sector.
The initial funds were spent on the construction of animal and fish feed production facilities in the Nongtaeng area of Vientiane and two feed production plants for pigs and poultry in Naluang and Namthouam in Luang Prabang province.
The funds also covered training of Lao officials so they know how to use the latest technology to ensure effective operation of the processing factories.
The animal and fish feed production facilities have been built with technology from Hungary and under the supervision of Hungarian experts. Hungary has strong experience in livestock and fishery development.
The project will help Laos to increase production of animal feed. Demand for livestock, poultry and fish for consumption has increased rapidly due to a growing population and middle income class over the past five years.
According to the press release, Hungarian and Lao officials have also discussed expansion of cooperation into new areas including health, education and tourism in order to enhance relations between the two countries.
Dr Thongloun thanked the Hungarian government for its financial assistance to Laos. He also congratulated Hungary on its role in organising the Asia-Europe Ministerial Meeting in June, which he hoped would be a success.
Mr. Botos and his delegation also visited the Minister of Planning and Investment on Tuesday to discuss cooperation plans between the two countries. The delegation also visited a number of Lao-Hungarian cooperation projects in Vientiane.
vientiane times
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