Bill would expand MFBʼs scope of activities

Banking

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.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.