Hungarian Development Bank signed EUR 75 million framework loan agreement: MFB to boost lending with favourably-priced funds
15 June 2018The Council of Europe Development Bank (CEB) is a long-standing strategic partner of MFB. Between 1999 and 2014 the two banks concluded several framework loan agreements in a total amount of EUR 735 million, and the co-operation is a positive experience for both parties. The funds made available under the last framework loan agreement concluded in 2014 have been fully drawn and used by MFB.
MFB’s strategic objective is to boost its lending activity that is intended to remedy market failures. Accordingly, a new framework loan agreement can be signed with CEB, through which MFB will be able to raise long-term funds at interest that is more favourable than the market rate.
Following conclusion of the agreement, the signing of the first disbursement request took place in a ceremony held on 13 June in Budapest. The event was attended on behalf of CEB by Vice-Governor Rosa María Sánchez-Yebra Alonso, and on behalf of MFB by Chairman-Chief Executive Officer Tamás Bernáth. Disbursement of the first, HUF 9.3 billion tranche – to be used for the financing of student loan system in Hungary – is expected to take place in the next few days.
The total EUR 75 million loan amount will provide funds for various financing programmes of MFB. The loan provided by CEB contributes – among others– to the favourable terms and conditions of MFB Financial Enterprise Refinancing Facility, and there is also an opportunity for financing of the student loan system in Hungary.
Further information: Levente Milassin Communications Director milassin.levente@mfb.hu
+36 1 428 1542