“The goal of the proposal concerning EximBank is for Central Europe’s fastest and most effective export financing system to come about in Hungary, including in the long term”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday in Parliament.

“The goal of the proposal concerning Exim Bank is for Central Europe’s fastest and most effective export financing system to come about in Hungary, including in the long term”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday in Parliament. The Minister said that in his evaluation: “The global pandemic is not only a health issue, but also an economic issue, and following the epidemic, nothing will be the same as it was before”. “A totally new competition is beginning, with new rules, new participants, on new trajectories and in response to the whistle of a new referee, and the time to enter this new competition is now”, he emphasised. He added that in this situation there can be no other goal than to ensure that Hungary continues to have the most attractive investment environment in Central Europe, and its fastest and most effective export financing system. He said that in his opinion: “Hungary is able to enter this competition with good foundations; the economic results of the past 10 years allow us to have great hope in view of the fact that over the past ten years Hungary has successively broken all previous records with relation to exports, investment and employment”. He drew attention to the fact that exports are responsible for 86.5 percent of Hungarian GDP, in addition to which Hungary is also part of the 35-member global elite club, the members of which can boast an export performance that exceeds 100 billion euros. “The goal is for the Hungary following the global pandemic to be even stronger and be in an even better position that it was prior to the epidemic, and that requires the reinforcement of the economy’s external dimensions, and enabling enterprises that produce for export to acquire more foreign trade opportunities”, he highlighted.
During the debate on the Act on the Hungarian Export-Import Bank Private Limited Company and the Hungarian Export Loan Insurance Private Limited Company, and the amendment of the Act on Foreign Representation and Permanent Foreign Service, the Minister said the goal of the proposal is to further reduce the administrative burdens of enterprises and to accelerate exporters’ access to financing, which is particularly important at a time when, amidst difficulties caused by the global pandemic, enterprises are facing liquidity challenges. According to the Minister’s account, the proposal will increase the credit limit of the commercial banks that effectively make EximBank’s loans available to enterprises, thus enabling more businesses to access these loan products. “Because currently, in view of the regulations on major risks, many commercial banks have already hit their limit for providing credit”, he explained.
“In addition, the proposal expands EximBank’s capability for investing in capital funds by enabling it to also issue investment fund shares with relation to the establishment of real estate funds or the joining of such funds, in addition to its existing ability to invest in domestic and foreign risk and private capital funds”, he continued. “As a result, EximBank could finance Hungarian real estate development enterprises, enabling them to potentially purchase industrial, tourism, office and other real estate in territories that lie outside our borders, or to take part in their development and operation. Accordingly, Hungarian enterprises that are already successful in Hungary and that develop and operate real estate portfolios could enter the international market, which will enable them to utilize their acquired market know-how and experience, and to export innovative construction industry and other products and services, since these become built in to the foreign properties that they develop or undertake to operate”, he explained in justification. “Due to its size, a real estate portfolio is capable of acquiring, and then operating and utilizing, a well-structure property portfolio made up of many elements, and accordingly it may be regarded as a relatively low-risk investment, given suitable expert supervision”. he explained.
Mr. Szijjártó drew attention to the fact that EximBank has introduced several new loan, guarantee and insurance products to ensure that Hungarian enterprises can exit the starting block from the most favourable position possible in the period following the global pandemic. “This includes a program launched with a credit line of 450 billion forints (EUR 1.28 billion) in which companies that undertake a role in the export value chain may apply for a loan with a six-year term at rates of interest between 0.1 and 0.7 percent”, he added. The Minister also mentioned that the proposal also includes an amendment of a technical nature to the Act on Foreign Representation and Permanent Foreign Service, which has been made necessary by the coming in to force of the new version of the Act on Governmental Administration. “The amendment transposes the opportunity for government officials over the age of 50 to be awarded three addition days of leave into the Foreign Service Act”, he said.

(MTI)