CEB and MFB sign €29 million disbursement agreement under the €75 million programme loan approved in March 2018
13 June 2018
BUDAPEST – Rosa Sánchez-Yebra, Vice-Governor for Social Development Strategy of the Council of Europe Development Bank (CEB),Tamás Bernáth, Chairman-CEO of the Hungarian Development Bank (MFB), and Ms. Réka Martini, Managing Director of MFB, today signed the Disbursement Request for the first disbursement under the Framework Loan Agreement of 17 May 2018 dedicated to sustainable and inclusive growth projects in Hungary.
The CEB financing will be channelled to MSMEs across the country, particularly businesses in Central Hungary and remote areas such as the Great Plain region, which often have difficulty accessing financing from commercial banks. The aim is to stimulate innovation and development in small businesses and increase their competitiveness in order to contribute to job creation and preservation. The CEB will also partially finance the MFB’s “Solar Panel Farm Financing Programme”, which will be of particular benefit to farms and agricultural companies.
In addition, CEB funds will be used to finance infrastructure development at the local level through the MFB’s “Municipal Infrastructure Development Programme 2020” and “Public Transportation Development Programme”, and will also finance the Student Loan Centre, which provides student loans in higher education to help with living expenses and study costs.The agreement was signed during a ceremony at MFB, where Vice-Governor Sánchez-Yebra stressed the importance of this project and said: “MFB is a long-standing partner of the CEB. We are pleased that through this cross-sectoral loan we will be able to support crucial areas of the Hungarian economy such as MSME financing, public infrastructure development, and education, with clear benefits in terms of job creation, improved living conditions in urban and rural areas, a greener economy, and easier access to higher education. We are confident that this first disbursement will support the Hungarian Student Loan Centre in providing students in Hungary with additional loans at favourable conditions, facilitating their access to higher education.”
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 stable, AA+ with Standard & Poor's, outlook positive 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.