EIB signed loans worth EUR 700m with Hungary in 2017 to promote SMEs, urban development and competitiveness
- EIB loans in Hungary slightly increased to c. EUR 700 million, representing approximately 0.6% of country’s GDP
- EIF commitment jumped to EUR 70m
- As a result, EIB Group actively supported small & medium enterprises, export-oriented companies, education, urban development and telecommunication projects
- EIB Investment Survey shows that Hungarian firms on average expect to increase their investment on a year-on-year basis
In 2017, The EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF), increased its commitment in Hungary in terms of both lending and guarantees and investments. Loans granted by the EIB reached EUR 702m, an increase of approximately 3% year on year, while guarantees and investments by the EIF amounted to EUR 70 m, a very significant increase from previous year (EUR 10m)
EIB loans represent 0,63% of the country GDP, versus a EU average of 0,46%, showing the significant impact that the EU bank’s financing has on the Hungarian economy.
EIB Vice-President Vazil Hudak, responsible for the Bank’s operations in Hungary and Cohesion countries, informed Hungarian journalists about the EU bank’s performance in Budapest today and stressed that the EIB sees a greater room for the bank’s engagement in the Central European country. In particular the bank is interested to boost financial support and deploy advisory & expert services leading to an increased use and absorption of available resources.
“Hungary plays a crucial role in the Central European region and is, for many international companies, a gateway into the European Union”, Vice-President Hudak said, adding, that “the stronger the Hungarian economy and businesses are, the better for the country. Small and medium size enterprises are of a particular importance and supporting their scale-up and growth is a key priority for the EIB”.
In 2017 the EIB lending in Hungary activity focused on:
- fostering Hungary’s competitiveness and job creation of export-oriented SMEs with a EUR 400m loan to Magyar Export-Import Bank (Eximbank)
- providing additional support, the development of the knowledge economy in Hungary, improvement of education and employability, health and social inclusion – all within a new tranche of EUR 200m under the framework of the European Regional Development Funds and the European Social Fund within the 2014-2020 EU programming period.
- ensuring adequate financing conditions to Hungarian corporates through a EUR 100m SMEs and Mid-Cap dedicated loan to Unicredit HU.
- For more details pls see http://www.eib.org/projects/loan/list/index.htm?from=®ion=1§or=&to=&country=HU
EIB Investment Survey (EIBIS)
The EIB Group Survey on Investment and Investment Finance is a unique, EU-wide, annual survey of some 12 300 firms. It collects data on firm characteristics and performance, past investment activities and future plans, sources of finance, financing issues and other challenges that businesses face. Key findings for Hungary, based on a survey of 475 firms:
- After a temporary slowdown in 2016, growth is forecast to pick up again, driven by private consumption and rebounding investment
- Hungarian firms on average expect to increase their investment in the financial year of consideration (the survey was conducted before last summer); firms in the manufacturing are the most likely to expect more investment, but the optimism is shared by companies across all the sectors.
- Availability of skilled staff and uncertainty about the future are key investment barriers mentioned by companies, as is also the case EU-wide. Access to finance is still a barrier for 43% of SMEs but only 20% of large firms.
- 9% of firms are finance constrained. This is above the EU average but an improvement since last year.
- Full report http://www.eib.org/infocentre/publications/all/econ-eibis-2017-hungary.htm