Erste Bank launches €550 mln credit program

Deals

Erste Bank Hungary is launching a three-year €550 million credit program as part of an agreement with the government and the European Bank for Reconstruction and Development (EBRD), Richard Szabados, head of the bank’s Corporate Division, told Hungarian news agency MTI.

Erste Bank Hungary committed to the program when the government and the EBRD each acquired 15% of its shares, said Szabados. About €250 mln of the credit will go to public sector workers to whom Erste is offering a number of preferential products. Another €200 mln will be used to finance small farming businesses and €50 mln will go to energy efficiency projects.

Erste Bank Hungary aims to secure one of the top three positions on Hungary’s corporate financing market by 2020, Szabados said. Erste Group hopes to see its local businesses among the top three players on corporate markets in all the countries in which it has a presence in the region, he added. To achieve this goal in Hungary, Erste needs to double its lending volume. 

Erste Bank Hungary has raised its net stock of corporate lending by 10% from HUF 300 bln at the end of 2015, even as the market stagnated, Szabados said. By year’s end, the stock is set to rise by 25%. New outlays came to HUF 25 bln in the first half, up 50% on the corresponding period a year earlier. 

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