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The European Investment Bank (EIB) is providing a loan of EUR 100 million to MFB Magyar Fejlesztési Bank Zártkörűen Működő Részvénytársaság (MFB - Hungarian Development Bank) to finance small and medium-sized investments and infrastructure projects promoted by SMEs, midcap companies and public sector promoters in Hungary.

Mr Wilhelm Molterer, EIB Vice-President responsible for lending in Hungary, commented: “This EIB loan will improve the access of Hungarian SMEs – the backbone of Hungary’s economy – to long-term financing and facilitate the implementation of priority municipal infrastructure projects. This will help to create new job opportunities and contribute to strengthening the competitiveness of Hungary”.

Mr László Baranyay, Chairman-Chief Executive Officer of MFB, added: “The two institutions as strategic partners signed finance contacts in the past decades in the aggregate amount of EUR 835 million which enabled the realisation of around 2,000 projects in Hungary, mainly in the municipal and SME sectors. EIB funds substantially contribute to the successful operation of MFB’s major development loan programmes, thus reaching an optimal financing penetration in the targeted sectors through the refinancing scheme.”

The loan is a continuation of the successful cooperation of the EIB with MFB. This is already the eighth EIB operation with MFB and the fifth loan supporting SME and municipal projects. 

EIB loans to banks finance smaller projects implemented by SMEs (with fewer than 250 employees) and midcap companies (with more than 250 and fewer than 3 000 employees) and local authorities. Since 1990, the EIB has provided almost EUR 4 billion, including the current loan, to support smaller projects in Hungary through the banking sector.