PHARE EEFS Preferential Loans for Energy Efficiency Investments

Last updated: 5 November 2017
The EU PHARE Revolving Fund (PRF) is a soft-loan credit facility to support the energy efficiency investments by small and medium-sized enterprises in the private sector and municipally-owned companies and institutions. The investments are co-financed by the European Investment Bank (EIB) and/or by one of the two Hungarian commercial banks. The scheme functions as a preferential credit scheme where the interest on the PHARE share is zero while the share of the international financial institutions (i.e. EIB) and/or that of the Hungarian banks bears a market interest. The loans are offered by the two commercial banks and the Energy Centre is responsible for the project evaluation and co-ordination. The interest free component of the loans paid up to 2006 totals EUR 7.5 million. After the ending of the system's operation, in 2008, Hungary may use the sums repaid by the loan applicants for energy conservation measures. Preferred areas for funding investment: modernisation of district heating systems, installation of CHP units, reconstruction of heating systems.

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