Brussels, 12/06/2009 (Agence Europe) - The European Investment Bank (EIB) is lending €100 million to Hungarian Development Bank Ltd (Magyar Fejlesztési Bank Zártkörûen Mûködõ Részvénytársaság - MFB) to finance projects by medium-sized companies in Hungary.
This is the first intermediated loan provided by the Bank in Hungary that will support only projects implemented by mid-cap companies (with more than 250 and fewer than 3,000 employees) and improve their access to long-term finance. To this end, the EIB is joining forces with well-established financing institutions, like MFB, that know the local market and have medium-sized companies in their customer base. EIB funds will finance up to 50% of the cost of small and medium-sized projects, with a maximum of €25 million for an individual project, in the areas of industry, transport, environmental protection, energy and energy savings, infrastructure and services, including tourism. In the past, the EIB provided five credit lines to MFB totalling €360m for SME investment. (O.L./transl.fl)