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MFB gets €100 mln EIB loan for SME, local council financing

The European Investment Bank (EIB) on Tuesday said it is providing a €100 million loan to the Hungarian Development Bank (MFB) to finance small and medium-sized investments and infrastructure projects promoted by SMEs, midcap companies and public sector promoters in Hungary.

"This EIB loan will improve the access of Hungarian SMEs - the backbone of Hungary's economy - to long-term financing and facilitate the implementation of priority municipal infrastructure projects. This will help to create new job opportunities and contribute to strengthening the competitiveness of Hungary," said Wilhelm Molterer, EIB vice president responsible for lending in Hungary.

MFB chairman-CEO László Baranyay said MFB and EIB had signed finance contracts in the past decades with an aggregate value of €835 million, supporting some 2,000 projects, mainly in the local council and SME sectors.

The new loans is the eighth MFB has taken out from EIB. It is the fifth such loan supporting SME and local council projects.