Release date: 19 October 2006
Promoter – Financial Intermediary
Hitelgarancia Zrt.Location
Description
Partial first demand counter guarantee of Hitelgarancia’s 80% guarantee of Hungarian commercial banks’ long term loans extended to Hungarian municipalities and/or associations of Hungarian municipalities.
Objectives
The proposed operation intends to make access to loan facilities easier for local public entities in Hungary, especially the smaller ones which do not have the collateral necessary for borrowing, making access to external financing very difficult under current market circumstances. It will also lower the funding cost for those public sector entities, as the Bank’s involvement will reduce the risk weighting of the corresponding loan amount to 0% for the originating commercial bank.
Comments
Operation targeting public sector.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 50 million.
Total cost (Approximate amount)
At least EUR 200 million.
Environmental aspects
All eligible projects will have to comply with the environmental conditions in line with European and national legislation.
Procurement
All eligible projects will have to comply with European and national legislation on procurement.
Status
Signed - 28/06/2007
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).