Hungary rolls out new variety of performance-linked EU grant

Hungary has called its first tender for European Union funding in the form of a conditionally reimbursable grant that links the scale of support to efficiency targets.

State secretary for the utilisation of EU funds Balázs Rákossy said 2 billion forints (EUR 6.0m) of the conditionally reimbursable grants are being offered to microbusinesses and SMEs for technology upgrades. Applications for the funding can be submitted from November 21, he added.

Companies may apply for grants of between 5 million and 40 million forints for new equipment, machinery or technology.

The degree of improvement at these businesses after the investments are completed will determine the amount of the grant money which may be reimbursed. Companies that fully meet their targets may not have to reimburse any of the grant money.

Rákossy said more and bigger tenders would be called for the type of funding in future.

Source: MTI