The EIB Vice President Wolfgang Roth and the representatives of the ERSTE Bank, Hungary, Mrs. Edit Papp, Board Member and Head of Corporate Division, and Mr Zoltán Pásti, Board Member, signed today a global loan contract of EUR 30 million. The loan will facilitate both small and medium-sized enterprises (SMEs) and municipalities' access to finance.
The global loan to a new intermediary bank aims at assisting Hungary's in its way towards membership of the European Union. In particular, it will make available the long-term resources required for financing projects typically promoted by SMEs. In addition, special priority will be given to environmental and energy-saving projects, usually promoted by the smaller local authorities. Thus, the loans will support the financial viability of these projects while contributing to the development of long-term finance in Hungary, an important element for further progress of the country's financial system.
Commenting on the loan Vice President Roth said: Support for the development of small and medium-sized companies and municipalities is an EIB priority. I am confident that the loan signed today will help to increase the productivity and competitive capacity of SMEs, which collectively make an important contribution to economic growth and employment throughout Hungary. The loan will also provide municipalities with the funds to improve the local business environment and place themselves as attractive areas for future investments.
The EIB's activities in Hungary have focused on providing loans for projects that are relevant to integration into the EU - in the areas of regional development, education, research & development, innovation, environmental protection and sustainable development. Generally, the Bank finances projects designed to support economically less-developed regions, strengthen economic and social cohesion and reduce economic disparities between regions and contribute to the balanced development of the Union.
Since 1990, the EIB has lent a total of more than EUR 21 billion in Central and Eastern Europe, of which loans to Hungary account for EUR 3.1 billion. During this period (and including today's facility) the EIB has signed 20 Global Loan facilities for an aggregate amount exceeding EUR 800 million, representing some 26% of total loans to Hungary.