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CEB and MFB sign a new loan to support green investments in small and medium enterprises in Hungary
20 October 2023
Paris – The Council of Europe Development Bank (CEB) and the Hungarian Development Bank (MFB) signed an agreement for a new €50 million loan to support micro, small and medium enterprises (MSMEs) that undertake energy-efficiency investments.
In line with the policies of the Hungarian Government to support MSMEs and the recommendations of the Central Bank of Hungary (MNB) that credit institutions switch to green operations by 2025, MFB will launch a new programme, partially funded by the loan from the CEB, extending loans to MSMEs that improve the energy efficiency of existing buildings or increase the use of renewable energy. MSMEs, which are the backbone of Hungary’s economy and employ almost 70% of its workforce, have been heavily endangered by the energy crisis. The new programme will also help protect existing and future jobs.
“By financing energy-efficiency improvements for MSMEs while creating and preserving jobs, this loan is a good example of what CEB’s investments can achieve: ensuring that economic and social inclusion goes hand in hand with climate action, so that they are mutually reinforcing” said CEB Governor Carlo Monticelli.
“The special mandate of CEB as the social development bank for Europe enables us to provide an added value to Hungarian businesses in the implementation of energy-efficiency and renewable energy investments, which is unique in the market,” emphasised MFB Chairman and CEO Levente Sipos-Tompa.
The CEB has a long-lasting, successful partnership with MFB, going back to 1999. In the past 24 years, the CEB approved ten loans in favour of MFB worth €810 million in total.
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.