Budapest Bank and Budapest Lízing on Wednesday signed agreements with the European Investment Fund (EIF) on a HUF 30bn and a HUF 27bn guarantee, respectively.
The agreements on the guarantees, that aim to make more financing available to SMEs, were signed by EIF Chief Executive Richard Pelly and Budapest Bank chairman-CEO Sean Morrissey.
The guarantees, shared in equal part by the EIF and Budapest Bank, will cut the collateral required on SME loans by as much as half. Borrowers will avail of the guarantees automatically and free of charge from June. Neither the time needed to take out loans or administration charges will change.
Budapest Bank is a unit of GE.
The EIF is the European Investment Bank’s specialist provider of SME risk finance across Europe.
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