The Council of Europe Development Bank (CEB) is providing a Ђ100 m loan facility for Hungary's largest commercial bank OTP, of which OTP drew down 50 per cent (CHF 76.5 m) last week with a maturity of ten years and variable interest rates.
The CEB is a multilateral development bank of the Council of Europe that finances social projects exclusively. The bank provides loans for various social initiatives as well as disaster relief. The CEB has been active in Hungary since 1998, providing loans with a total value of Ђ500 m to date, mostly for purposes of flood protection, job creation and home building.
With the help of the CEB loan, OTP is able to access funds under favourable conditions, from which the bank can finance projects in the small-and medium- sized enterprise (SME) sector.
Source: Interfax
