The Hungarian Export-Import Bank (Eximbank) will soon take out a €142 million midterm loan, mainly from Hungary’s credit line from the International Monetary Fund (IMF), with the cooperation of state-owned Hungarian Development Bank (MFB), which is its majority owner, Eximbank chairman István Csillag said at a press conference on Monday.
MFB will receive a two-installment multi-currency loan of HUF 170 billion (€590 million) from a €20 billion international loan package granted to Hungary by the IMF, the EU and the World Bank last autumn according to a Finance Ministry announcement in the middle of April.
The bank will use the loan to improve the stability of financing for its lending activities by correcting the incongruity between the runs of loans and lending resources, Csillag said.
The loan will be used to replace the two-week to one-month loans Eximbank used to finance itself between the beginning of last October and the beginning of April, Csillag said, without revealing the exact term of the loan.
MFB is expected to disburse the loan in June and it will cover medium-term loans for SMEs. Csillag said demand for euro-denominated loans recorded at Eximbank reached €1.6 billion, while the demand for dollar-denominated loans was $210 million and that for forint-denominated loans was HUF 8.3 billion.
Eximbank CEO Zoltán Bodnár said the bank’s stock of loans varied between HUF 130 billion and 150 billion between 2002 and 2007 and reached an all-time high of HUF 187 billion at the end of 2008. The stock of loan guarantees has been around HUF 45 billion since 2002.
Bodnar said Eximbank aims at helping Hungarian companies to be present in relatively riskier markets too, such as Russia or CIS countries or some South-Asian countries.
Eximbank had total assets of HUF 230 billion in Q1 2008, while the bank’s pre-tax profit was HUF 240 million during the period.
Eximbank had pre-tax profit of HUF 839 million in 2008, down from HUF 1.23 billion in 2007. The bank’s total assets rose 25% to more than HUF 200 billion in the twelve months to the end of December. (MTI-Econews)