News
CEB supports Hungarian businesses through € 50 million loan to Hungarian Eximbank
7 July 2015
BUDAPEST - The Council of Europe Development Bank (CEB) and Hungarian Eximbank signed today a € 50 million loan facility agreement to support micro, small and medium-sized enterprises (MSMEs). Signing were the CEB’s Vice-Governor for Target Group Countries Mikolaj Dowgielewicz and Eximbank’s Chief Executive Officer Zoltán Urbán. The facility agreement is expected to finance through the Hungarian banking system. The CEB loan will provide financing for end-users’ working capital and investment needs of up to € 5 million.
The signing ceremony was attended by László Szabó, Deputy Minister for Foreign Affairs and Trade, who said: “The agreement supports the Government’s goal to increase Hungary’s export to GDP ratio by incentivising export activity among MSMEs. I trust that a growing number of Hungarian enterprises will take advantage of the services provided by these new, enterprise-friendly foreign trade policy instruments.”
Zoltán Urbán, Eximbank CEO added: “By signing this agreement we are pleased to have the opportunity to strengthen our lending activity towards the domestic MSMEs while reducing at the same time the related funding cost.”
Commenting on the agreement, Mikołaj Dowgielewicz, CEB Vice-Governor, said: “I am delighted to be signing on behalf of the CEB this loan agreement with Hungarian Eximbank to finance the investment projects of MSMEs throughout Hungary. Supporting MSMEs is of major importance to the CEB and constitutes one of our four sectoral lines of action. And channelling much-needed funding to small businesses is vital when it comes to creating viable jobs and preserving existing ones. This is what’s needed in Europe today in order to boost economic growth.”
CEB funding will reach end-user enterprises through partner banks which have joined Eximbank’s Export Promoting Credit programme (EHP), established to facilitate favourable financing for Hungarian exporters and their direct suppliers. The CEB loan facility agreement will strengthen the export activity of Hungarian MSMEs.
Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook negative, AA+ with Standard & Poor's, outlook stable and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.