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EBRD extends credit line to develop private sector in Slovak Republic
A leading Slovak private bank will receive long-term funds through a credit line from the European Bank for Reconstruction and Development (EBRD) to finance small and medium-sized private enterprises and facilitate trade. The multipurpose seven-year loan facility in the amount of DM 30 million (ECU 15.6 million) to Tatra Bank was signed yesterday in Bratislava.
Kurt Geiger, Senior Banker in the EBRD Financial Institutions Team, said: "This loan addresses the need for medium and long-term resources for the Slovak industrial sector. The multipurpose, flexible nature of this facility allows funding for different types of projects including trade facilitation. The loan also contributes to the institutional development of a promising Slovakian private sector financial organisation."
Proceeds of the credit line will be used primarily to fund long-term investments by small and medium-sized enterprises. Examples of the use of funds include: modernisation, expansion and diversification of industrial and production facilities; acquisition of shares in the context of privatisation of an enterprise where purchase of shares will improve efficiency through better management; meeting working capital requirements of industrial and manufacturing clients for production purposes; and export and pre-export financing of industrial manufacturing clients.
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