European Bank for Reconstruction and Development (EBRD) and Intesa Sanpaolo Group have joined forces to increase the availability of financing to the real economy sector in Central and Eastern Europe with a financing package of up to EUR100m to Intesa Sanpaolo Group’s subsidiaries in Bosnia and Herzegovina, Hungary and Serbia for on-lending to small and medium enterprises (SMEs).
The EBRD financing offered to Intesa Sanpaolo Group is part of the Joint IFIs action plan, a joint initiative of EBRD, the World Bank Group and the European Investment Bank Group to provide EUR24.5bn in support of banking systems and lending to the real economy in central and eastern Europe.
Subject to completion of legal documentation, the facility includes three SME credit lines of EUR20m to Intesa Sanpaolo Bank in Bosnia and Herzegovina, EUR30m to Banca Intesa Beograd and EUR50m to CIB Bank (Hungary).
A part of the credit line to CIB Bank is denominated in Hungarian Forints, with the view to promoting local currency lending and reduce exposure to foreign currency risks for un-hedged sub-borrowers.
Nick Tesseyman, MD of financial institutions at EBRD, said: “Through this project the EBRD reconfirms its commitment to help the economies of the region address the impact of the financial crisis. The funds provided to the three subsidiaries of the Intesa Sanpaolo Group will facilitate the access to much-needed financing for businesses in Bosnia and Herzegovina, Hungary and Serbia in the current tight credit markets.”