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Successful implementation of energy efficiency framework for Slovak Republic
Four local banks to receive EBRD loans for on-lending
With the signing of four credit lines worth €15 million each to the leading Slovak banks Dexia Banka Slovensko, Slovenska Sporitelna, Tatra banka and VUB Banka the EBRD has successfully implemented the recently launched energy efficiency framework for the Slovak Republic.
The loans will be on-lent to enterprises and housing associations for investments in energy efficiency and renewable energy. Eligible clients are private sector companies and residential borrowers. Eligible projects will range from energy saving measures in companies to insulation of apartment houses.
The framework is complemented by a €15 million grant from the Bohunice International Decommissioning Support Fund. The grant will be targeted to provide technical assistance, energy audits and financial incentives to sub-borrowers and the participating banks for the successful implementation of such projects.
The Slovak Republic has significant potential for improvements in energy efficiency and renewable energy. The energy intensity of the Slovak economy is 3.75 times higher than the EU-25 average in nominal terms. The country’s 1.7 million households account for 22 percent of total consumption.
At the same time, the Slovak Republic has committed itself to the closure of Units 1 and 2 of the Bohunice nuclear power plant by end-2008. As the economy is growing strongly and so is the country’s energy consumption, improving energy efficiency and raising the contribution of renewable sources is key to safeguard Slovakia’s energy security.
Terry McCallion, EBRD Senior Banker and operations leader for the project, said: "the success of this model lies in its ability to reach a broad target market through loans from local banks with a wide use of proceeds such as industry, renewable energy and the residential sector and thereby maximising the impact of donor funds in promoting sustainable energy investments in the Slovak economy".
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