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EBRD and OTP Bank Slovakia sign €10 million SME credit line
European Commission provides additional support for SME financing
Small and medium-sized enterprises in the Slovak Republic should benefit from
easier access to finance following a €10 million loan by the EBRD to OTP Bank
Slovakia (OBS). The funds will support OBS in building a portfolio of good
quality small and micro loans of up to €125,000 or €30,000 each, respectively.
The loan is made under the EU/EBRD SME Finance Facility and supplemented by
financial and technical support from the European Commission for staff
training.
OBS, with 67 branches, is increasing its role in financing SMEs in the Slovak
Republic. Using the long-standing experience of its parent company OTP Bank
Rt. Hungary, OBS helps small and medium-sized Slovak enterprises cope with the
competitive environment in the EU. The €10 million loan will also help OBS
focus more on smaller loans, using credit scoring and sound credit principles.
Alexander Auboeck, EBRD Director for the Czech Republic, Hungary, the Slovak
Republic and Slovenia, said the loan will help drive the development of the
business climate in the Slovak Republic. The creation of a solid “Mittelstand”
is one of the EBRD’s key priorities, he added.
Károly Hodossy, Chairman of the Board of Directors of OTP Bank Slovakia,
underlined that SME financing is one of his bank’s top priorities. Loans
provided under the new credit line will supplement OBS’s existing portfolio of
tailor-made products for this sector.
The EU/EBRD SME Finance Facility, a joint programme of the European Commission
and the EBRD, supports the development and growth of entrepreneurs by
facilitating their access to finance. The Bank has committed €700 million, of
which €495 million has been disbursed by local banks and leasing companies,
including €105 million in Slovakia. The EC has committed €130 million in grant
financing and for technical assistance since the facility’s launch in 1999
under the Phare Programme, the main channel for the EU’s financial and
technical cooperation with accession countries. Phare’s overall budget is
about €1.5 billion a year. For further information see: http://europa.eu.int/comm/enlargement
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