© Shutterstock
  • Funding from the European Investment Advisory Hub (EIAH) will enable Magyar Fejlesztési Bank (MFB) to support the preparation of investment projects in key sectors, such as information and communication technologies (ICT), the environment and resource efficiency
  • Support will also be offered via an online advisory platform that will help project promoters, public and private, to develop and implement sustainable projects

The European Investment Bank (EIB) — the bank of the European Union— and Magyar Fejlesztési Bank (MFB), will cooperate to help MFB’s advisory unit to provide advisory services to Hungarian project promoters. The agreement will enable Hungary’s national development bank to offer support for the investment activities of businesses (small and medium-sized enterprises (SMEs) and mid-caps), municipalities and state-owned companies. The EIB grant to MFB is being provided through the European Investment Advisory Hub (EIAH), part of the Investment Plan for Europe.

MFB’s advisory unit (Üzleti Tanácsadás Csoport), established with the support of a previous EIAH grant, will provide technical assistance and advisory support for preparing, implementing, financing and monitoring investment projects in key sectors of the Hungarian economy, including information and communication technologies (ICT), the environment and resource efficiency. As the coronavirus pandemic affected the country’s economy, MFB’s advisory unit will also focus on supporting the recovery and green investment activities of key economic players such as SMEs, mid-caps, municipalities and state-owned companies.

To achieve these goals, MFB will develop an online advisory platform and a financial product map to help project promoters navigate the financing opportunities available to them at the national and EU level. MFB’s advisory unit will also provide bespoke advisory services for building a pipeline of investment projects. Advisory services will include workshops and capacity building for developing project promoters’ knowledge of best practice and sharing information on key topics related to project preparation and financing.

EIB Vice-President Teresa Czerwinska said: “The advisory services to be delivered by MFB, with the funding support of the EIAH, will help Hungarian businesses recover from the pandemic and access financing, to the benefit of the Hungarian economy. We are glad to provide MFB with such funding support and enable them to assist the recovery of Hungarian promoters and help them identify and develop green and sustainable investment projects.”

European Commissioner for the Economy Paolo Gentiloni added: “Thanks to the Investment Plan for Europe’s Advisory Hub and the EIB, Magyar Fejlesztési Bank will expand its advisory services to help public and private actors, including municipalities and SMEs, to prepare and implement sustainable projects. This is good news and will support Hungary’s recovery from the COVID-19 crisis, while boosting investments in the digital and green sectors.”

Dr Levente Sipos-Tompa, Chairman and Chief Executive Officer of MFB, said: ”Recently, MFB has done a lot to ensure that Hungarian companies, especially micro-, small- and medium-sized enterprises, maintain and increase their competitiveness despite the unpredictable conditions. Our experience shows that in many cases accurate information and knowledge to solve difficult situations are just as important as flexible, well-diversified funding. As a national development bank, financial education is an important part of the MFB's vision, which we can realize together with our excellent international partners such as the EIB’s Advisory Hub.

Background information

The EIB in Hungary

EIB lending commitments in Hungary since the start of the Bank’s activity in the country are currently close to €21.6 billion. Between 2008 and 2018 alone, the EIB signed support agreements worth €13.2 billion. EIB operations cover important sectors of the Hungarian economy, including transport, the environment, energy infrastructure, manufacturing and services.

Another key component of the Bank’s activity in Hungary is the promotion of small and medium-sized enterprises (SMEs) by increasing SME access to long-term financing through local financial institutions. Since 2001, the EU bank has supported 5 172 Hungarian SMEs, sustaining 263 767 jobs in the process.

About the European Investment Advisory Hub (EIAH)

The European Investment Advisory Hub (EIAH) is a partnership between the European Investment Bank Group and the European Commission under the Investment Plan for Europe. The EIAH is designed to act as a single access point to various types of advisory and technical assistance services. It supports the identification, preparation and development of investment projects across the European Union. Building our local partnerships across Europe has been a priority of the Advisory Hub since its launch in 2015: today, the Hub’s partner network includes more than 40 local institutions, with almost 30 formal agreements signed with national promotional banks and institutions (NPBIs) and other partners. Through a dedicated call for proposals, the Hub made funding and technical support available to NPBI partners to develop their capacity to deliver advisory services locally and boost investments on the ground.