Hungary aims to create central Europe’s most efficient export financing system, says FM Szijjártó

With a government bill tabled in parliament in connection with Hungary’s Exim Bank, the aim is to establish central Europe’s fastest and most efficient export financing system over the long term, the minister of foreign affairs and trade said in parliament on Tuesday.

The bill seeks to further reduce administrative burdens on Hungarian businesses and fast-track financing for exporters facing liquidity problems, Péter Szijjártó said.

Noting the economic aspects of the novel coronavirus epidemic, he said the world would change dramatically once the pandemic was over.

“A completely new competition will begin with new rules, new players, new markets and new leaders; and we must enter this competition stream now,” he said, adding that Hungary would have a good position in that race.

The government’s goal is to ensure that the economy is even stronger after the pandemic than it was before, which requires “strengthening its external dimensions” as well as helping export companies to further opportunities in other countries.

If the bill is passed, commercial banks brokering Exim Bank’s loans would benefit from an increased credit limit, which would then help further businesses to loan products, he said, adding that many banks have already reached their limit under the current regulations.

Under the new legislation, he added, Exim Bank would have a broader scope for manoeuvring to invest in property funds through issuing equities aimed at establishing or joining such funds.

The bank could finance Hungarian real estate developers, helping them to opportunities even outside the country, he added.

Read also2/3rds of Hungarians already lost money because of the coronavirus

Source: MTI