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EBRD, EU and ING Bank Slaski to develop SMEs
EU and ING Bank Slaski to develop SMEs €20 million credit line to help strengthen Polish economy
A €20 million credit line from the European Bank for Reconstruction and Development to ING Bank Slaski, one of the largest financial institutions in Poland, will help the bank support the growth of small and medium-sized enterprises (SMEs) across the country. This credit line builds on a €10 million credit line issued by the Bank under the facility in January 2000.
The new credit line to the bank will include an additional €1.7 million being made available by the European Commission (EC) in funds to help develop the project. This financing is part of the EU/EBRD SME Finance Facility, a programme of the European Commission in cooperation with the EBRD aiming to help SMEs gain access to bank finance in the EU accession countries.
The EBRD has extended credit lines to four banks in Poland including ING Bank Slaski, Fortis Bank Polska, Pekao S.A. and Bank Zachodni WBK. Kurt Geiger, Business Group Director for Financial Institutions at the EBRD, said there is a strong SME market in Poland and that to help fuel its growth, the EBRD, together with the EU, is working with local banks to on-lend finance to local entrepreneurs. Under the first EBRD credit line, ING Bank Slaski, which has around 346 branches nationwide, granted around 470 loans to SMEs across the country. Mr Geiger said the second credit line will address the continuing need of local entrepreneurs' access to finance. It is these small businesses that greatly help strengthen an economy, added Mr Geiger.
The EU/EBRD SME Finance Facility was launched on April 1999 under the Phare Programme with the EBRD. The Phare Programme is the main channel for the European Union's financial and technical cooperation with the candidate countries of central and eastern Europe. The programme's budget is about €1.5 billion.
The EBRD aims to foster the transition from centrally planned to market economies in central and eastern Europe and the Commonwealth of Independent States. It is owned by 60 countries, the European Investment Bank and the European Community.
The EBRD holds its Annual Meeting in Bucharest, May 19-20. Visit the EBRD's website at: www.ebrd.com
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