Brussels: The European Union has approved a £10bn ($11.4bn) recovery funding package for Hungary, with the money to be provided through a combination of grants and loans.

According to Qatar News Agency, the European Commission announced on Friday that £6.5bn of the package would be made available as grants, while a further £3.5bn would be offered in loans.

The Commission emphasized that, as with all national recovery plans, payments would be linked to the fulfillment of agreed reform and investment milestones. It was noted that member states had approved Hungary's reform and investment program, which includes measures aimed at strengthening anti-corruption efforts and improving transparency in the management of public funds and public procurement.

The EU has previously withheld funding from Hungary due to concerns about breaches of the rule of law and the bloc's fundamental values under the government of nationalist Prime Minister Viktor Orban. The announcement coincides with the incoming government of Prime Minister Peter Magyar, who has pledged to adopt a different political approach and hopes to secure the swift release of the funds.

The EU's Recovery and Resilience Facility was established during the Covid-19 pandemic to help member states finance reforms and investments to support their economic recovery.