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MFB signs for €100 mln EIB credit line

The state-owned Hungarian development bank MFB signed a contract on a €100 million credit line from the European Investment Bank (EIB) to support project financing for mid-sized businesses, MFB told MTI.

MFB may call down the loan in at most five tranches of €20 million apiece by December 31, 2010.

The financing may be used for lending to companies with no more than 3,000 employees, and loans must be made directly by MFB.

The conditions for the EIB loan are more favorable than market conditions, MFB director György Szelényi said when asked by MTI.

The loan agreement is the sixth between MFB and EIB: MFB borrowed ECU 10 million from the bank in 1998 and €50 million to support SME-financing in 2003. In 2005, 2006 and 2007, the bank took out €100 million each year from the EIB to finance an infrastructure development program for local councils and the “new Hungary” business development program. (MTI – Econews)