MFB Hungarian Development Bank Private Limited Company
Hungarian Development Bank, Hungary
MFB Hungarian Development Bank Private Limited Company (MFB) is a specialised financial institution, established in 1991 and currently governed by the MFB Act of 2001, with the mandate to provide funds for Hungary’s medium and long-term development. MFB is 100%-owned by the Hungarian State, whose rights are exercised by the Minister of Prime Minister’s Office. The bank’s lending and investment operations are shaped by its development role and its role in funding the government’s development strategy and investment priorities. While mandated to support public policy strategic goals, MFB applies private sector lending and risk management practices, striking a balance between profitability and its development mandate.
MFB is also an important market player in providing long-term financing to certain Hungarian borrowers, whether through its direct lending activities or its refinancing of commercial bank loans. Furthermore, MFB participates in channelling EU funds into the Hungarian economy.
MFB’s main strategic objective is the contribution to the development of the Hungarian economy.
MFB performs its objectives set out in a legislative framework and its banking strategy in the following activities:
- Lending: direct and on-lending;
- Financing for companies, small and medium sized enterprises, municipalities, public entities, state owned companied and state development investments considered significant in terms of the national economy and government backed projects of national importance;
- Venture and equity capital financing (via Group members);
- Subsidy intermediation (via Group members).
MFB finances its economic development operations from the following sources:
- International bonds: one outstanding EUR and one outstanding USD public issues;
- Domestic bonds: Four outstanding private placements;
- Loans from IFI’s: EIB, CEB, KfW, NIB, NRW.BANK;
- Bilateral: Two outstanding transactions
MFB supports the SME and the agricultural sectors and the municipalities in the forms of loans and guarantees. MFB provides mainly working capital programs and investment loan programs. MFB also provides loans for housing communities and private individuals for block house renovation program. Furthermore MFB finances transport development as well.
Mrs. Ildikó Zátrok – Head of Department | Hungarian Development Bank Private Limited Company
1051 Budapest, Hungary
Fax: +36 1 428 1559
Mr. Csaba Harsányi – Director | MFB Brussels Representative Office
1000 Brussels, Belgium
Fax: +32 2 735 65 99