“Based on last week’s decision on the part of the Cabinet, a National Export Protection Program is being launched with a budget of 25 billion forints (EUR 71.65 million) within the framework of the Economy Protection Action Plan to support Hungarian enterprises that wish to grow and expand on export markets, or acquire new markets”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Monday at an event in Budapest to ceremoniously sign cooperation agreements with eight enterprises that are joining the Priority Exporter Partnership Program.
Mr. Szijjártó explained that the new program is made up of two parts: two billion forints (EUR 5.73 million) are being specifically earmarked for small enterprises, which will be receiving funding towards the costs required to acquire export markets, with a maximum of 50 million forints (EUR 143.3 thousand) in funding per enterprise. The remaining 23 million forints (EUR 65.92 million) will be made available to enterprises that realise investment projects or capacities at any faraway point around the world in the interests of also being able to market their products in places far from Hungary. “In many cases, conquering a foreign market requires local business activity, be it some simplified assembly or packaging activity, or something more complex. The establishment of such capacities is often a prerequisite to acquiring an export opportunity”, he explained. He also mentioned that the Export Funding Program was also launched last week, with a similar budget of 25 billion forints, which will be supporting Hungarian enterprises that realise cross-border investment or development projects in the interests of preserving or developing their competitiveness. “This funding may be applied for by Hungarian enterprises that invest in six neighbouring countries, excluding Austria, and the maximum level of funding that may be provided to a single enterprise is 800 thousand euros, which may cover up to 60 percent of the total cost of the given investment project. The two new government programs mean that a total budget of 50 billion forints (EUR 143.3 million) is now available to finance Hungarian export enterprises”, the Minister highlighted.
At Monday’s signing ceremony, Alpha-Vet Ltd., Bábolna Tetra Ltd., Hell Energy Hungary Ltd., HungaroControl Zrt., Ilcsi Szépítő Füvek Ltd., Meditop Pharmaceuticals Ltd., Silveria Electronics Ltd. and Tungsram Operations Ltd. joined the Priority Exporter Partnership Program. Mr. Szijjártó said that together the eight companies achieved 204 billion forints (EUR 584.7 million) in turnover last year, two thirds of which, some 137 billion forints (EUR 392.7 million), was derived from exports. “Accordingly, these enterprises also significantly contributed to enabling Hungary to set yet another export record last year”, he declared. Managing Director of Hell Energy Hungary Limited Barnabás Csereklye said that all of the companies joining the Program have created enterprises that can also stand their ground in international business life, and which contribute to the acknowledgement of the competitiveness of the Hungarian economy. The Hell Group has grown to become Hungary’s market-leading energy drink producer over a period of less than four years, and today possesses export market spanning over 50 countries, which is significant by even international stanrards. “The majority of the company’s turnover is derived from exports, and the company spends its earnings on realising investment projects in Hungary, with which it creates valuable jobs. Thanks to the various investment promotion funding programs, we are able to assure the livelihoods of over 1200 families”, he added.
(Ministry of Foreign Affairs and Trade / MTI)