Up to €200m in New Loans: EIB and CIB Help Hungary's Mid-Sized Firms Expand

EIB Vice-President Marko Primorac highlighted the important position of mid-sized businesses in generating innovation and creating quality employment opportunities across Hungary.

The European Investment Bank (EIB) and Hungary's CIB Bank, a member of the Intesa Sanpaolo Group, have signed a €100 million risk-sharing agreement to help mid-sized businesses access financing and expand their operations. The partnership is expected to support up to €200 million in new business loans and generate approximately €280 million in investment across Hungary, providing companies with greater opportunities to modernise, improve productivity and compete in larger markets. The agreement marks the introduction of the EIB's Growth for MidCaps (G4M) programme in Hungary, bringing new financial support to companies that play an important role in employment and economic development.

Mid-sized companies are important contributors to Hungary's economy, supporting industrial activity, developing new products and creating employment opportunities across different sectors. Many of these businesses face difficulties securing affordable financing because they are often too large to qualify for certain government-backed guarantee programmes but lack the borrowing options available to major corporations. The new agreement is designed to address this financing gap by allowing CIB Bank to offer more attractive loan conditions and support business investments that might otherwise be delayed.

The partnership also marks the renewal of cooperation between the EIB and CIB Bank after 15 years, bringing together their financial resources and expertise to strengthen Hungary's corporate sector. Through the risk-sharing arrangement, the EIB will help CIB Bank manage part of the lending risk, creating additional capacity for financing eligible mid-sized companies. Businesses are expected to benefit from larger loans, longer repayment periods and reduced collateral requirements, making it easier to invest in equipment, business expansion and productivity improvements.

New Financing Opportunities for Growing Hungarian Companies

The €100 million risk-sharing agreement will enable CIB Bank to increase lending to mid-sized enterprises through the EIB's Growth for MidCaps programme, which supports businesses seeking financing for investment and expansion. By sharing financial risks with the EIB, CIB Bank will be better positioned to extend credit on more competitive terms and provide support to companies with substantial investment requirements. The arrangement is expected to unlock up to €200 million in new lending, encouraging approximately €280 million in investment by Hungarian businesses.

Access to larger financing amounts and longer repayment periods could help companies purchase modern equipment, expand production capacity and introduce technologies that improve their efficiency. Lower collateral requirements may also make financing more accessible for businesses that have promising investment plans but cannot provide the level of security traditionally demanded by lenders. These improvements are expected to encourage business expansion, strengthen productivity and support the development of companies capable of competing in domestic and international markets.

EIB Vice-President Marko Primorac highlighted the important position of mid-sized businesses in generating innovation and creating quality employment opportunities across Hungary. He explained that these companies frequently encounter financing difficulties despite their ability to contribute substantially to economic growth and business development. The partnership with CIB Bank is expected to help overcome these barriers by improving access to investment financing and supporting businesses seeking to expand their activities.

EIB and CIB Bank Renew Partnership After 15 Years

CIB Bank Chairman and CEO Luigi Fuzio described the agreement as an important step in restarting strategic cooperation between the two financial institutions and introducing the G4M guarantee programme to Hungary. He explained that sharing lending risks with the EIB would help the bank improve capital efficiency, expand financing activities and offer competitive financial solutions to corporate clients. The renewed partnership will allow CIB Bank to support a larger number of mid-sized businesses and strengthen its role in financing Hungary's corporate sector.

Giuseppe Ferraro, Executive Director of Corporate, SME and Small Business for the International Banks Division of Intesa Sanpaolo Group, also welcomed the agreement as part of the group's commitment to supporting business development. He highlighted the importance of encouraging investment, strengthening corporate competitiveness and creating conditions for sustainable economic growth across Hungary. The cooperation reflects the wider efforts of both financial institutions to help companies obtain the resources needed for expansion and long-term business development.

Over 60% of Financing to Reach Hungary's Less-Developed Regions

More than 60% of the financing supported by the agreement is expected to benefit companies operating in Hungary's less-developed regions, where businesses may face greater difficulties accessing investment capital. Directing financial resources toward these areas could help companies expand their operations, improve productivity and create employment opportunities outside the country's more economically developed centres. The regional focus is expected to contribute to economic and social cohesion by supporting business development in communities that need additional investment opportunities.

The investment programme is also expected to strengthen Hungary's long-term economic competitiveness by helping mid-sized companies improve their operations and respond to changing market demands. Greater access to affordable financing could encourage businesses to invest in modern technologies, improve production processes and develop the capacity needed for future growth. Through its partnership with CIB Bank, the EIB is supporting a wider effort to strengthen private-sector investment, promote regional economic development and create a more resilient business environment across Hungary.