The European Investment Bank (EIB) is to lend €100m to MKB Bank Zrt. (MKB) to finance projects undertaken by small and medium-sized companies (SMEs) and mid-cap companies.
The EIB funds will support small-scale projects in the following sectors:
– environmental protection,
– the knowledge-based economy,
– industry and services, including tourism.
MKB Bank, which is one of the oldest members of the Hungarian banking system, is now the fourth-largest financial institution on the domestic market by balance sheet totall and the leading member of the BayernLB Group in Central and Eastern Europe.
This loan represents the EIB’s contribution to the coordinated effort with the European Bank for Reconstruction and Development (EBRD) and the World Bank to provide up to €24.5bn to support investments by SMEs, which have been badly hit by the global economic crisis, in Central and Eastern Europe.
In this constest, the EIB is committed to contributing €11bn to this package, mainly in the form of lending to SMEs via banking partners such as MKB.