Hungary Provides 580 Million Euro Loan to MFB

Hungary will provide loans worth a total of over 580 million euro to development bank MFB, owned by the state. The funds will be drawn from the financing of 19 billion euro obtained from the IMF and the EU announced the ministry of finance Budapest.

“The loan will enable to MFB to respect the international obligations of repaying the debts, maintain and expand its lending activities”, is shown in a communication of ministry.

MFB will expand its loan portfolio by 55 billion forints (189 million euro), and borrowing from the state will be provided in two installments. MFB loan is not part of funds of 600 billion forints (2 billion euro) loan from the previously allocated from the Fund to provide capital and government guarantees banks.