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MFB signs framework agreement for €125 million CEB loan

The Hungarian Development Bank (MFB) on Friday said it signed a framework agreement for a €125 million loan from the Council of Europe Development Bank (CEB) to refinance developments of local government infrastructure and at SMEs as well as a lending program for the renovation of blocks of flats.

Including the present loan, MFB has borrowed €535 million from CEB since 1998, and it owes CEB €446.2 million, MFB spokesman Janos Nyiri said when asked by MTI.

CEB will set the interest rate on the loan when it is called down, he said.

The loan for local council infrastructure has a long run and a three-year grace period, while the loans for SME developments has a short run and a one-year grace period, he added.

Resources from the CEB, together with loans from other international development institutions, allow MFB to offer better than market conditions for financing to SMEs, local governments and building cooperatives, Nyiri said.