A further loan of EUR 200 million is available for expanding Hungarian exports. The successful cooperation between Eximbank and the European Investment Bank (EIB) enables Hungarian SMEs to play a pivotal role in Hungarian exports, said Péter Szijjártó, State Secretary of the Hungarian Ministry for Foreign Affairs and Trade today in Budapest. According to the agreement, EIB will provide funds to Eximbank on favorable terms to offer a competitive financing option for Hungarian SMEs.
The State Secretary underlined that the Government’s objective is that Hungary will be ranked first among the European Union member states in terms of the export to GDP ratio, although Hungary is already second in this respect behind Slovakia. According to Eurostat, Hungary’s exports already account for 97 percent of the GDP, and the Government wants domestic SMEs to play a more significant role in the export process. Hungarian exports amounted to HUF 57.4 billion in the first six months of 2014, representing a 9 per cent increase when compared to the same period last year.
State Secretary Szijjártó stated that SMEs account for 15 per cent of exports, and the Government’s intention is to increase this share. Institutions that support Hungarian SMEs in gaining an extra mile abroad, such as Eximbank, have a key role.
Roland Nátrán, the CEO of Eximbank said that in accordance with its funds-raising strategy, EIB had already provided a refinancing credit line of EUR100 million to Eximbank in December 2013, with the aim of financing export transactions in the European Union. The entire credit line was drawn and allocated to 170 Hungarian companies, mainly manufacturing and commercial businesses, who received favorable financing through domestic banks. This was the basis of the new agreement that will target SMEs, allocating 70 per cent of the funds to them. The cooperation will ease the burden on the Hungarian budget due to a saving of HUF 9 billion in interests, and will stimulate domestic export activity.
Tilman Seibert, Director Lending Operations in Central Europe said that the loan will help Eximbank reach its goal of supporting regional development and boost the productivity of SMEs. Innovation, the creation of new jobs and finance on favorable terms from EIB will improve the access of SMEs to further long-term loans.
(Ministry of Foreign Affairs and Trade)
