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Slovak business gets cash injection from EBRD loan
Through an agreement signed today in Bratislava, private sector enterprises in the Slovak Republic will benefit from a DM 30 million (ECU 16.3 million) loan financed by the European Bank for Reconstruction and Development (EBRD). The loan is in favour of Istrobanka, a joint-stock company incorporated under Slovak law to finance medium and long-term investment projects and permanent working capital requirements in connection with financing projects of private sector enterprises.
David Hexter, Deputy Vice President of the EBRD, said: “This loan will allow Istrobanka to expand its long-term lending operations to its private sector clients, thus meeting their needs, help diversify Istrobanka’s funding base, and establish a track record of long-term borrowing from an international institution. It will also help Istrobanka to attract additional term funds in the future”.
The main objectives of the project will be to support a developing financial institution in the Slovak Republic, majority-owned by local entities, that is committed to the local market and expansion of its term lending for investment purposes, as well as to develop financial intermediation.
Istrobanka already has a pipeline of 10 projects, centring on the wood, rubber, glass and paper industries, and financing of environmental programmes, for which the two-tranche loan will be used.
Istrobanka was established in September 1992 by Slovak Insurance Company. The Municipality of Bratislava took a minority interest in 1993 and GiroCredit Bank of Austria purchased a small shareholding in 1994. With 431 employees and 12 branches, Istrobanka operates as a universal commercial bank.
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