The European Investment announced on June 9 2009 a 100 million euro loan to the Hungarian Development Bank to assist projects by mid-cap companies – those with 250 to 3000 employees – to improve their access to long-term finance against the background of the financial crisis.
 
"To this end, the EIB joins forces with well-established financing institutions, like MFB, that know the local market, have mid-cap companies as their customers and have a well-developed network of branches," the EIB said.
 
Hungary’s economy went into recession in the third quarter of 2008, and on June 9 the central statistical office said that the country’s economy had contracted by an annual 6.1 per cent in Q1 2009.
 
Hungary's GDP decreased by 2.5 per cent in Q1 2009.
 
The government and the central bank forecast that Hungary's economy will contract by 6.7 per cent by the end of 2009.
 
The EIB said that its funds would finance up to 50 per cent of the cost of small and medium-sized projects, with a maximum of 25 million euro for an individual project, in the areas of industry, transport, environmental protection, energy and energy savings, infrastructure and services, including tourism.
 
This loan is a continuation of the successful co-operation between the EIB and the Hungarian Development Bank, the EIB said.
 
Previously, the EIB has provided five credit lines to this financial institution amounting to 350 million euro in support of SME investment.
 
Since 1990, the EIB has provided about 10.2 billion euro in loans in Hungary, including this loan. Of this amount, 2.4 billion euro represents loans supporting the development of entrepreneurial activities of SMEs, mid-cap companies and municipalities.