Hungarian government raises capital of Széchenyi Investment Fund

Hungary’s government has raised the capital of the Széchenyi Investment Fund (SZTA), an EU-supported venture capital fund established by the state to invest in SMEs, by 8 billion forints (EUR 26.3m) and extended its run, Economy Minister Mihály Varga said on Monday.

The investment period of the fund, established in 2011, was extended until the end of 2025, Varga said. The deadline for exiting its investments was extended until 2030, he added.

The government also decided to launch in September two investment funds under SZTA’s aegis targeting businesses in central Hungary and in areas in neighbouring countries with ethnic Hungarian populations, Varga said. The Irinyi II Venture Capital Fund will be launched with 8 billion forints to invest and the Carpathian Basin Business Development will start operating with 20 billion forints.

The government is launching a third fund with 20 billion forints to support listings on the Budapest Stock Exchange, Varga said. The National Bourse Development Fund will also start operating in September.