Sustainable Financing for the Hungarian Economy

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.

The European Investment Bank (EIB) — the bank of the European Union — and Magyar Fejlesztési Bank ('Hungarian Development 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 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, according to an EIB press release.

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.

According to EIB Vice-President Teresa Czerwinska, “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 that “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, pointed out that ”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."