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EBRD and Banque Nationale de Paris to co-finance loan to Hungarian chemicals company
Hungarian chemicals exports will be given a boost as a result of a loan signed on 8 April 1994 by the European Bank for Reconstruction and Development, Banque Nationale de Paris and Framochem Kft, a Hungarian joint venture owned by SNPE, a French chemical company, and Borsodchem Rt, a Hungarian chemical concern. The FFr 20 million (ECU 3 million equivalent) loan will be provided equally by BNP and the EBRD.
Framochem, located in Kazincbarcika in northeastern Hungary, produces phosgene derivatives and fine chemicals which are used by numerous industries such as plastics and agrochemicals. Proceeds of the loan will be used to upgrade and enlarge the plant and to improve environmental performance. The loan will enable the company to broaden its range of phosgene derivative formulations and thereby gain access to export markets.
Mario Sarcinelli, Vice President of EBRD, said: "Framochem is the first business unit of Borsodchem to be privatised. We are pleased to support this medium-sized company which will export 80 per cent of its output to Western and Asian markets and generate net hard currency earnings, through an innovative co-financing arrangement with BNP."
The plant is environmentally in good operational order and, in general, up to western standards. The loan will allow Framochem to increase health and safety standards through process automation and modernisation of existing plant and equipment. Framochem has developed an environmental action plan, reviewed by EBRD specialists, which aims to increase maintenance levels, personnel safety and environmental training.
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