Daily News Hungary

Budapest, June 15 (MTI) – The government has raised the threshold for advance payments on European Union support from 50 percent to 100 percent, business daily Vilaggazdasag said on Wednesday.

After signing a contract for EU support, all applicants can receive up to 50 percent in advance. For research and development, the advance is up to 75 percent. Private individuals, small and medium-sized companies, civil groups, church organisations and non-profits can receive up to 1 billion forints (EUR 3.2m).

Budgetary organisations, local governments, state-owned companies and public organisations that have their account at the treasury or have a dedicated account for budget support at the treasury can receive up to 100 percent advance on EU support. The same applies if the support does not exceed 500 million forints.

According to the paper, the thresholds are not strict and anybody can request more than 50 percent advance payment upon presenting a liquidity plan that justifies this.

The advance payment must be paid back if the support is used for a different purpose than originally agreed or the project does not progress for a year. If the payment is not returned, then the cancellation of the recipients’s tax number can be initiated.

Source: http://mtva.hu/hu/hungary-matters

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