MFB disburses more than HUF 1,000 billion in EU loans
19 September 2023As of September 2023, the total amount of repayable EU funds disbursed by MFB Hungarian Development Bank has topped HUF 1,000 billion. More than 22,600 businesses have received preferential funding through the loan schemes intermediated through the three operational programmes, while the Residential Energy Efficiency Programme has enabled the energy-related modernisation of nearly 27,500 homes. Thanks to a decision by the Government, the programmes announced in the 2014-2020 EU cycle were available to residential customers as well as to micro, small and medium-sized companies at zero or minimal interest rates.
MFB (the ownership rights over which are exercised by the Ministry of Economic Development) began in 2016 to distribute the financial resources available under the 2014-2020 EU cycle, that is, the EU loan schemes, for which the Government has developed an efficient and unique solution. The resulting network of MFB Points provided expert assistance, and of course funds, to businesses at 642 commercial bank branches across the country. Within the context of three operational programmes (the Human Resources Operational Programme, the Competitive Central Hungary Operational Programme, and the Economic Development and Innovation Operational Programme), a total of six venture capital programmes, nine combined corporate loan programmes, two consumer loan programmes and 11 corporate loan programmes were implemented in the fields of research and development, infocommunication, energy efficiency and corporate technology development.
To help mitigate the economic impact of the COVID epidemic and the global energy crisis, businesses were able to apply for zero-interest funds from 2020 for liquidity as well as investment purposes, with the aim being to retain jobs and ensure the stability of the businesses. The most successful business loan programme was the Interest-Free Quick Start Loan, which helped nearly 10,000 businesses, but the SME Technology Loan Programme (GINOP-8.3.5-18/B) was also very well received, providing support for more than 8,000 businesses. The success of the programme, which was re-launched in December 2022, was reflected in the fact that demand at the MFB Points had in no time outstripped the available budget three times over. To meet the demand for these funds, the Government decided to increase the original envelope of HUF 100 billion to HUF 313 billion, thus making the preferential funds available to as wide a circle of borrowers as possible.
There was also huge interest in the loan programme aimed at increasing the energy efficiency of residential buildings and their use of renewable energy (GINOP-8.4.1/A-17 and VEKOP-5.2.1-17). The loan programme was launched to provide funding to increase the energy efficiency of residential buildings, as well as the use of renewable energy sources in relation to residential buildings. The loan was also available for the insulation of residential properties, the modernisation of heating or hot water systems, and the installation of such items as solar collectors, solar panels, and heat pumps, thus enabling the modernisation of a wide range of housing stock in Hungary. Thanks to the EU-funded loan programme available through MFB Points at 0% interest, in addition to the modernisation of some 27,500 residential buildings, greenhouse gas emissions have also been reduced.
The lending results achieved in connection with the close of the 2014-20 period can be summarised as follows:
- In the case of consumer loan programmes (two loan programmes), 27,456 contracts worth a combined HUF 88.4 billion were concluded, of which 27,000 loans totalling HUF 84.5 billion were disbursed.
- In the case of corporate combined loan programmes (nine combined programmes), nearly 3,000 contracts were signed for a total of HUF 134.5 billion, of which 2,701 disbursements were made in a total value of HUF 115.3 billion.
- Under the corporate loan programmes (11 loan programmes), more than 25,000 contracts were signed for HUF 844 billion in all, of which nearly 25,000 were disbursed in an amount of HUF 806.8 billion.
Dr Levente Sipos-Tompa, Chairman & CEO of MFB, said: “The MFB Points network has proven in recent years that it is fit to distribute EU repayable funds in a flexible way, in line with the needs of businesses and residential customers, efficiently and quickly. We have set the same goal for the period that lies ahead of us – MFB is fully prepared for the task at hand!”
More than 56,000 contracts worth a total of HUF 1,067.1 billion were concluded in the context of the EU loans disbursed by the nationwide network of MFB Points operated by MBH Bank Zrt., as well as by OTP Bank Nyrt. and Granit Bank Zrt., and more than 97% of these, i.e. nearly 54,000 contracts worth more than HUF 1,000 billion, have been fully disbursed.
Further information:
MFB Hungarian Development Bank
Marketing and Communication Directorate
kommunikacio@mfb.hu