economic development in Hungary Csaba Harsányi Director Brussels Representative Office 9th of October 201 9 Hungary in key numbers 2 MFB is here Population GDP ID: 791586
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Slide1
1
MFB’s role in
sustainable economic development in Hungary
Csaba Harsányi – Director, Brussels Representative Office
9th of
October
201
9
Slide2Hungary in key numbers
2
MFB is
herePopulationGDPGDP growth rate 2018
Inflation
2018
Unemployment rate
MID
1
9
Public debt to GDP
EOY
18Corporate tax ratePersonal income tax rate
Number of active SME’sShare of SME’s in GDPShare of SME’s in employmentSME financing to GDP
10 million€155 billion4,9%3,1% 3,4%70,8%flat 9%flat 15%
300,000
50%
75%
12%
Slide3MFB: special role in Hungarian banking system
3
Active relationship with the Hungarian banking system:
42 refinancing partners
Loan, equity and guarantee in one hand
Long-term, large loans for key projects
EU –Fund of Funds implementing body: ~EUR 3.4 billion
Special solutions for SME’s and municipalities
Slide4MFB group: source of solutions for many purposes
4
Key financial solutions and specialties under one roof
Debt management
Loan
Financing
Equity
Guarantee
Payment technologies
Student loan
Property management
Loan and combined loan programmes
MFB
as Fund of Funds
& private fund managers
Venture capital programmes
Banking Group
EU
funds
Slide55Targets
& Funding Target beneficiaries and funding sources of MFB loan
products Natural persons
SMEs and MidCapsLarge enterprisesMunicipalitiesLarge projects
ESIF
Global
Refinancing
Loans
(EIB, CEB, KfW, CDB, etc
.)
Capital
Markets
(
Bonds
,
Syndicated
Lonas
, etc.)
Slide66MFB
products for sustainabilityTarget beneficiaries:
SMEs and Mid-Caps
Slide77MFB
products for sustainabilityTarget beneficiaries
: Private Individuals and Municipalities
Slide8FI P
roduct Range in 2014-2020 8
TOLoan programs (11)Combined loan programs (9)
Venture capital programs (7)TO1Loan program for supporting RDI activities of enterprises (EDIOP1)Combined loan program for supporting RDI activities of enterprises (EDIOP)National technological and intellectual property venture capital program (EDIOP)Smart specialisation venture capital program (EDIOP, CCHOP)
TO2
Digital
welfare
loan
programme
(EDIOP)
Loan program for the development of NGA and area networks
(
linked to grant
; EDIOP)Combined loan programs for supporting ICT development (4 programs; EDIOP)Specialized seed and pre-seed investment fund for start-up ICT companies venture capital program (EDIOP)
Digitalisation Fund (EDIOP)Digital welfare capital program (EDIOP)TO3 Loan program for enhancing competitiveness of SMEs
(EDIOP, CCHOP
)
Loan program
for
the
technological
modernisation
of SMEs (EDIOP)
Combined loan program for supporting
c
apacity expansion of SMEs (EDIOP)
Combined loan program for supporting medium-sized food companies
(EDIOP)
Irinyi
venture capital program (EDIOP)
TO4
Energy loan program for SMEs (
EDIOP)
Loan program for
i
mproving energy efficiency in the housing sector (EDIOP, CCHOP2)
Combined loan program for improving energy efficiency of SMEs’ buildings with the use of renewable energy
(EDIOP, CCHOP)
-
TO8
Loan program for promoting
of employment (EDIOP)
-
-
TO9
HRDOP
3
financial instrument loan programme
-
-
1
Economic
Development and
Innovation
Operational
Programme
2
Central
Competitive
Hungary
Operational
Programme
3
Human
Resources
Development
Oparational
Programme
Slide9FI P
roduct Range in 2014-2020 9
TOLoan programs (11)Combined loan programs (9)
Venture capital programs (7)TO1Loan program for supporting RDI activities of enterprises (EDIOP1)Combined loan program for supporting RDI activities of enterprises (EDIOP)National technological and intellectual property venture capital program (EDIOP)Smart specialisation venture capital program (EDIOP, CCHOP)
TO2
Digital
welfare
loan
programme
(EDIOP)
Loan program for the development of NGA and area networks
(
linked to grant
; EDIOP)Combined loan programs for supporting ICT development (4 programs; EDIOP)Specialized seed and pre-seed investment fund for start-up ICT companies venture capital program (EDIOP)
Digitalisation Fund (EDIOP)Digital welfare capital program (EDIOP)TO3 Loan program for enhancing competitiveness of SMEs
(EDIOP, CCHOP
)
Loan program
for
the
technological
modernisation
of SMEs (EDIOP)
Combined loan program for supporting
c
apacity expansion of SMEs (EDIOP)
Combined loan program for supporting medium-sized food companies
(EDIOP)
Irinyi
venture capital program (EDIOP)
TO4
Energy loan program for SMEs (
EDIOP)
Loan program for
i
mproving energy efficiency in the housing sector (EDIOP, CCHOP2)
Combined loan program for improving energy efficiency of SMEs’ buildings with the use of renewable energy
(EDIOP, CCHOP)
-
TO8
Loan program for promoting
of employment (EDIOP)
-
-
TO9
HRDOP
3
financial instrument loan programme
-
-
1
Economic
Development and
Innovation
Operational
Programme
2
Central
Competitive
Hungary
Operational
Programme
3
Human
Resources
Development
Oparational
Programme
Slide1010
ELENA (European Local Energy Assistance)experiencesPDA programme
of the European Commission delivered through the EIBFor municipalities:Before: difficult to reach the ELENA phase (projects structuring, financing, partnering, etc.)During: project management, pre-financing, timing, procurementAfter: bankable sustainability
For enterprises and natural personsProgramme level combinationSeparate eligible preparation and implementation costsProcurement questions
Slide1111
„Hungary’s public sector investment as a share of GDP is well above the EU average, while private sector’s investment is slightly below it.Of the six
strategic priority sectors the transport and energy, and ICT sectors received the largest share of investment resources.In contrast, the environment and resource efficiency and RDI sectors received just 2% each to the total investment in Hungary, thus showing potential for boosting investments in these sectors.”
Some key market gaps in hungaryAs identified by PwC commissioned by EIAH
Slide1212
Some key market gaps in hungaryStrategic
transport and energy infrastructure Transport infrastructure Project identification: scoping of transport infrastructure due to limited strategic planning at present Project preparation: preparing urban mobility, waterway projects, long-distance railway networks, support with preparation of PPPs Financial structuring: financing schemes in transport (use of financial instruments) Energy infrastructure Project identification, preparation, and delivery: energy grid connection infrastructure Environment and resource efficiency Project identification and preparation: waste management projects RDI Financial structuring: developing business cases for newer financing schemes (venture, crowdfunding) Capacity building: improve knowledge transfer between multinational companies, local companies and the national research system; advice on available funding EU funding sources and how to access them
As identified by PwC commissioned by EIAH
Slide13Thank
s for your sustained
attention!13