Project number:


Business sector:

Non-depository Credit (non bank)

Notice type:


Environmental category:


Approval date:

06 Nov 2001



PSD disclosed:

21 Sep 2001

Project Description

A proposed €25 million syndicated loan to Tecnicrédito Hungary, a consumer credit company specialising in financing the acquisition of automobiles.

Transition Impact

This operation will be the second EBRD project in Hungary that will support a business focusing primarily on consumer finance operations after the Budapest Bank equity investment. It will be the first one in the car financing industry. The Bank is currently working on a number of consumer finance projects as part of the expansion of its non-bank financial institutions activities, all with a slightly different focus in terms of their activities. In all these cases, the companies are addressing a demand not currently provided by the local retail banks and they are looking to the Bank for long-term financing. The development of specific consumer finance businesses in the Bank's countries of operations is only possible in the more advanced countries, where legislation and consumer profiles allow its healthy development.
This project will support the planned growth of TH and will strengthen the competition in this segment of the Hungarian market. TH benefits from the expertise of its parent company, which developed sophisticated credit and risk management tools in Portugal in the late 1980s and the '90s. These tools have been conservatively tested by TH over the last two years and the company now believes that it has the necessary market expertise to expand its operations without lowering the quality of its portfolio or the level of service that it provides to its clients. TH will also benefit from TP’s experience in the financing of used cars, as this market is particularly underdeveloped in Hungary.

The Client

Tecnicrédito Hungary (TH) is a consumer credit company specialising in financing the acquisition of automobiles, with a particular emphasis on used cars. The company started operations in November 1998 and adopted a cautious approach, assessing the potential and the risks of the Hungarian market. The year of 2001 was chosen for a more aggressive commercial approach, aiming at increasing the company’s market share without hindering the quality of its portfolio.
TH is a 100 per cent subsidiary of Tecnicrédito SGPS (TP), a leading Portuguese consumer credit holding company, and it benefits from the 14 year experience of its parent company in the Portuguese market. In particular, TH takes advantage of TP’s advanced credit and monitoring systems.

EBRD Finance

€25 million syndicated loan under the standard A/B loan structure. The EBRD would take €10 million of the final loan amount for its own account and the balance would be syndicated among participating banks.

Project Cost


Environmental Impact

 TH will conduct its business with due regard to the environment, health and safety and will ensure that cars to be financed comply, at a minimum, with all applicable environmental and health and safety regulations and standards in Hungary.

Technical Cooperation


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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