Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

17 Dec 2002



PSD disclosed:

22 Oct 2002

Project Description

A proposed framework facility of up to €150 million for VG subsidiaries in central and eastern Europe for the purpose of on-lending to provide finance to SMEs, mortgages, and small and medium-size municipalities. See table annexed for details of individual project commitments.
The framework would enable VG subsidiaries to make medium and long-term finance available to their clients in Hungary, Czech Republic, Slovak Republic, Slovenia, Croatia, Bosnia and Herzegovina and Romania.

Transition Impact

Expected transition impact is two fold: (1) strengthening competition/increasing provision of financial services to SMEs and retail clients and (2) supporting the development of mortgage finance and finance to small-and medium-size-municipalities (which are relatively new even in more advanced countries of central Europe). As the project develops, it would provide a model to the financial sector in the region.

The Client

Österreichische Volksbanken-Aktiengesellschaft (Volksbank Group or VG) subsidiaries in Hungary, Czech Republic, Slovak Republic, Slovenia, Croatia, Bosnia and Herzegovina and Romania.

EBRD Finance

A proposed framework facility up to €150 million.

Project Cost

Up to €150 million.

Environmental Impact

VG subsidiaries would adopt and implement environmental procedures in line with EBRD's Environmental Procedures for Local Banks. Sub-loans would be required to comply, at a minimum, with national health, safety and environmental regulations and standards and adhere to EBRD's Environmental Exclusion List. The Bank will receive annual environmental reports from subsidiaries.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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