Deputy State Secretary for Development Policy Nándor Csepreghy has announced that funding in the first three priorities of the Economic Development Operational Programme has been resumed, following the European Commission’s decision to lift the five-month-long suspension of disbursement. He added that in the next few weeks development funds of approximately HUF 210 billion will be allocated to Hungary. The EU is expected to make the payment at the beginning of October, thus the funds may arrive within weeks, he said.

The programmes – R&D, complex enterprise development and developing a modern business environment – were suspended in April due to objections to the selection procedure for projects in Hungary; this procedure had been in place since 2007. Mr. Csepreghy noted that since 2007 these three programmes have facilitated investments worth HUF 700 billion. He also added that applicants have not felt the effects of the suspension. Related amounts needed to be pre-financed by the budget; however, a vast percentage of the remaining funds had already arrived in Hungary in recent years.

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A part of the agreement was also that Hungary will apply a so-called flat-rate correction for disputed projects; these corrections amounted to HUF 21.7 billion. The parties have also agreed that Hungary will not lose these funds, but will use them to pay for developments previously financed from the Hungarian budget: every single applicant will receive the appropriated funds, down to the last penny, he said. “We have once again got one step closer to completing funding for the 2007–2013 period”, he said in summary.

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Mr. Csepreghy also pointed out that Hungary has drawn practically all the funding from the 2007–2013 period; payments will total HUF 8 700–8 800 billion, instead of the previously forecast HUF 8 200 billion. This difference is due to the disparity between the HUF/EUR exchange rates in 2007 and now, which has made possible the disbursement of an extra HUF 400 billion. Furthermore, another HUF 200–300 billion will be allocated to projects previously accepted and covered by the central budget.

(Prime Minister's Office)