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Government to inject HUF 60bn in capital into state development bank MFB

The government will inject HUF 60bn in capital into the state-owned Hungarian Development Bank (MFB) to help the bank and MFB group carry out their operations, a government resolution dated Thursday and published in the Official Gazette Magyar Kozlony on Friday shows.

HUF 6bn of the capital injection will increase MFB’s registered capital, while the remaining HUF 54bn will go into the bank’s general reserves.

The capital increase is designed to give the bank the capital position necessary for it to attract external financing and to expand activity at both MFB and its units, the resolution said.

The capital increase will be carried out immediately after a relevant amendment to the 2011 Budget Act, to be initiated by the National Economy Minister, is passed.