The International Finance Corporation (IFC), and the Hungarian Export-Import Bank have agreed to streamline their collaboration to provide much-needed financing to private companies.

The Hungarian Export-Import Bank is the 21st development finance institution to sign IFC´s Master Co-operation Agreement (MCA), which standardises steps that lenders take when co-financing projects with IFC.

“This streamlined approach saves time and money for borrowers – private companies in emerging markets – and lenders. IFC has syndicated over US$4.4bn in parallel loans for clients since the establishment of MCA, 50% of which has come from MCA signatories,” an IFC statement said.

IFC created the MCA in response to calls by the Group of 20 for official finance institutions to collaborate more closely to help meet shortfalls in private sector financing during the global financial crisis.

Roland Nátrán, CEO of the Hungarian Export-Import Bank says: “Our mission is to expand Hungary’s export sector and facilitate trade with foreign markets in order to support jobs and growth.

“Through closer collaboration with IFC we will be able to explore new channels for interacting with economies in Europe and beyond, while supporting private sector investment and development.”

“The agreement with the Hungarian Export-Import Bank marks the addition of another important partner to our network of MCA signatories,” says Stefania Berla, IFC director for syndicated loans and management. “It also complements IFC’s longstanding relationship with Hungary, which includes co-operation with Hungarian banks and donor-funded initiatives.”

Hungary became an IFC shareholder in 1985. Since then, IFC has invested over US$438mn in private sector projects, and mobilised US$70mn from commercial banks to support private sector development in Hungary. In March 2013, Hungarian Export-Import Bank pledged US$20mn to IFC to help the private sector in Asia, the Middle East and North Africa, and the Balkans tackle some of the world’s most pressing development challenges.