Matthias Kunsch, managing director of HVB Bank Hungary announced that, contrary to earlier plans, HVB did not set up a separate company to facilitate early entry to the factoring market, but concluded a deal to buy the shares of Korona Faktor.
The purchase will be completed once financial market regulator PSzAF approves the deal.
Under an agreement signed by HVB Bank Hungary and the European Investment Fund (EIF), EIF will provide a guarantee for 50% of the principal and interest on loans extended by HVB to small- and medium- sized enterprises (SMEs), Matthias Kunsch and EIF official Alessandro Tappi announced in Budapest.
EIF will provide a Ђ30m guarantee line for HVB until the end of 2005.
EIF provides the guarantee without charge to both the bank and the bank's clients and the guarantee is awarded automatically once a client credit application has been approved.
