Hungary launches EUR 1 billion credit scheme to boost exports and foreign investments

The government on Wednesday announced the launch of a close to HUF 400bn (EUR 1 billion) credit scheme to support exports and outward FDI.

Richárd Szabados, the state secretary for SMEs, said the scheme was an element of the Demján Sándor Programme which aims to scale up SMEs and boost GDP growth over 3pc. The HUF 1,400bn Demján Sándor Programme includes credit, grant and capital financing elements as well as measures to reduce administrative burdens.

Kornél Kisgergely, the chairman-CEO of Magyar Eximbank, said the lender would play a strategic role in implementing the Demján Sándor Programme. Applications for the new credit will be accepted from January 6, 2025, he added. Some HUF 350bn in credit will be available for outward FDI. Borrowers must take out at least HUF 2bn in the construction.

Credit for investments to boost exports will include HUF 50bn for leasing. Bence Katona, who heads National Capital Holding, said HUF 60bn would be available to finance outward FDI in the framework of a capital investment programme. Transactions are expected to range from USD 1m to USD 25m, he added. National Capital Holding owns a USD 165m private equity fund for outward FDI that is managed by Focus Ventures, he said. The fund targets investments in Europe and Asia, especially ones in Central Asia, he added.

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