Some HUF 142 billion in foreign currency will be made available to small, medium-sized and large enterprises to increase their export capacities over the coming year thanks to framework agreements concluded by Eximbank and several commercial banks. Funding may be increased depending on bank demand.
According to the cooperation agreement signed on Wednesday, the banks taking part in the scheme are renewing their refinancing agreements with a maturity of over two years and favourable interest rates signed with EXIM.
The agreement was signed by State Secretary of the Ministry of Foreign Affairs and Trade László Szabó, Chief Executive Officer of Eximbank (EXIM) Zoltán Urbán and the representatives of the 15 banks which have joined the scheme.
Before signing the document, László Szabó emphasised that the agreement efficiently serves the strategic purposes of the Government’s foreign trade policy, including Hungary’s goal of achieving the highest rate of exports compared to GDP in Europe. Increasing the exports of small and medium-sized enterprises (SMEs) is essential and thus their appearance on foreign markets must be encouraged. He added that he hoped these framework agreements would promote an increase in the number and proportion of exporting SMEs.
Zoltán Urbán, Chief Executive Officer of Eximbank, commented that cooperation with banks was of outstanding importance as at present some 74 percent of cut-rate EXIM funding reach enterprises in Hungary in this way.
Eximbank achieved growth of almost 20 percent over the first six months of the year, extending new loans worth HUF 139 billion (EUR 443M) by the end of June. New lending is expected to reach HUF 327 billion (EUR 1bn) by the end of the year. Total financing is likely to total HUF 774 billion (EUR 2.5bn) by the end of 2015.
Refinancing is planned to exceed HUF 500 billion (EUR 1.6bn) this year, of which the bank’s export pre-financing product with a maturity of over two years, which is a favourable and efficient form of financing for SMEs, will account for HUF 400 billion (EUR 1.28bn) by the end of the year.
One of the major advantages of this export pre-financing scheme, which is available through commercial banking partners in euros and dollars, is that it can be devoted both to financing the export of goods and services and processed agricultural products and, in addition to exporters themselves, their suppliers too. The fixed-interest funding with an over two-year maturity based on the CIRR (Commercial Interest Reference Rate) uses simple documentation and accelerated procedures, and is available under the current conditions in euros at annual interest rates varying between 0.84 and 4.1 percent.
The following banks have joined the scheme: Budapest Bank, CIB Bank, Commerzbank, Erste Bank, FHB Bank, Gránit Bank, KDB Bank Európa, K&H Bank, MKB Bank, NHB Bank, Oberbank AG’s branch office in Hungary, OTP Bank, Raiffeisen Bank, Takarékbank and UniCredit Bank Hungary.
(MTI)
