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EBRD signs loan with Magyar Hitel Bank in Hungary
A loan of US$ 30 million ( ECU 27 million equivalent), the final part of a four loan package, was signed today by the European Bank for Reconstruction and Development and Magyar Hitel Bank (MHB) in Budapest.
The total package of US$ 103 million (ECU 90 million equivalent) to four Hungarian banks, guaranteed by the Republic of Hungary, was approved in July 1993 by the Board of Directors of the EBRD as part of the agricultural restructuring project.
Thierry Baudon, Deputy Vice-President who signed the loan for EBRD, said: "The four loans will help in the transition process to a market based agricultural sector. Hungarian farmers and other small and medium size enterprises operating in the agribusiness sector now have access to long term funding in both local or hard currency."
The first three loans, signed in August 1993, were made to Commercial and Credit Bank (US$ 40 million equivalent); National Savings and Commercial Bank (US$ 25 million equivalent); and Budapest Bank (US$ 8 million equivalent). These banks on-lend to finance investments in private agribusiness ventures and are responsible for the identification and credit risk assessment of individual projects.
Since August 1993, 44 individual projects totalling US$ 20 million have been approved for a total financing of US$ 14 million. EBRD has disbursed a total of ECU 6 million and received further disbursement applications for ECU 3 million. Several loan applications for individual projects have already been received from MHB.
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