The European Investment Bank (EIB) is lending EUR 140 million to the Austrian Hotel and Tourism Bank (Österreichische Hotel- und Turismusbank G.m.b.H - ÖHT) to finance projects usually implemented by smaller private and public companies in the Austrian tourism sector.
This loan is designed to support smaller projects in Austria in the tourism area which is very significant for the country. It is aimed at reducing the impact of the current economic crisis by improving access to medium and long-term funds on advantageous financial terms. To these ends the EIB is also simplifying its procedures and broadening the scope of its financing by also covering intangible types of investment. In addition, it is increasing transparency by working towards a more effective transfer of the advantage of EIB funds to the final beneficiaries.
EIB funds will finance projects mainly implemented by SMEs active in the tourism sector (with fewer than 250 employees) and improve their access to long-term finance. To these ends, the EIB is joining forces with well established financing institutions, like the ÖHT, that know the local market, have SMEs and family companies as their customers and possess a well developed network and alternative distribution channels.
The current loan is a continuation of the successful cooperation between the EIB and the ÖHT. The EIB has previously provided three credit lines to this financial institution amounting to EUR 109 million supporting smaller investments in the tourism sector in Austria. All these credit lines have been successfully used.
Note to editors:
The EIB, the European Union's long-term financing institution, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.
EIB lending in Austria for 2007 and 2008 reached some EUR 1.07 billion and EUR 1.32 billion respectively, out of which EUR 550 million was support for SME and municipality projects representing 23% of the total EIB lending during this period in the country.