Bill would expand MFBʼs scope of activities
A bill submitted to lawmakers by the government on Tuesday would broaden the scope of activities of the Hungarian Development Bank (MFB), state news wire MTI reports.
The bill would expand the lenderʼs scope of activities "in the interest of allowing MFB to more effectively carry out tasks related to ensuring development resources necessary to achieve economic development goals outlined in the governmentʼs mid- and long-term economic strategy", according to the justification for the proposed legislation.
The bill would allow MFB, and investment funds included in its consolidation, to acquire stakes in companies even without providing those companies with credit or venture capital.
Such acquisitions "in and of themselves can also ensure the achievement of economic development goals...by supporting a boost in the business activity of the given company", the minister without portfolio in charge of managing state assets said in the justification.
The bill would clear MFB to issue guarantees for corporate bonds and for leases.
It would also eliminate a prohibition on MFB making venture capital investments for the sole purpose of providing companies with working capital.
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