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European Bank approves Central Europe Agency Line
The Board of Directors of the European Bank for Reconstruction and Development yesterday approved the establishment of a US $50 million (ECU 40.9 million equivalent) credit line to finance loans between $US 250 thousand and $US 8 million to private enterprises in Central Europe, starting with Hungary, the Czech and Slovak Federal Republic, and Romania.
Société Générale, the fourth largest bank in France, will take a minimum of 50% participation in each loan. Its local branches and affiliates in Hungary, the CSFR, and Romania will act as the European Bank's agent in screening, structuring, conducting credit analysis, executing and supervising loans. All loans will be subject to approval by the European Bank.
The European Bank will provide up to US $25 million (ECU 20.5 million equivalent) to fund the line. Société Générale will provide at least the remaining US $25 million.
This is the second Agency Line financed by the European Bank, and it is the Bank's intention to finance more lines to give enterprises improved access to the Bank's resources.
"Establishment of this line will allow the Bank to deliver its resources more efficiently, and will help small and medium sized businesses to develop," said European Bank President Jacques Attali.
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