Hungarian Development Bank
Hungarian Development Bank, Hungary
The Hungarian Development Bank (MFB) is a state-owned specialised financial institution functioning as a development bank in the classical sense of the word, dealing with the allocation of public and market resources for development purposes. The Bank's strategy is primarily defined by its role in the attainment of government development objectives, and it operates with a view to advancing Hungary's economic convergence with the most developed countries by providing medium- and long-term development loans and development capital.
MFB operates in harmony with the state's economic policy objectives. It performs reallocation of assets based on their peculiar characteristics, but does not perform asset management of any kind.
MFB's strategy, as well as its related structure of activities and the decision-making mechanisms that derive from them, and the Bank's set of business objectives and instruments are all determined by the intention to contribute to the implementation of the economic development objectives, and to promote economic development.
Based on international experience of development banks and fully taking into account the guidelines of international organisations involved in development financing while considering the trends in European development banking, and also to ensure transparent activities, MFB basically performs its objectives set out in a legislative framework and its banking strategy in four activity blocks that are separate in terms of function but are related in terms of contents, management and business.
- Provision of financing for companies and state development investment considered significant in terms of the national economy;
- Relying on partly government, or fully banking resources, it provides capital- and loan-financing of private-sector investments that are consistent with economic development objectives;
- Channeling diverse international development aid in ways consistent with economic development objectives, and supplying international economic aid designed to assist Hungarian enterprises;
- Consistent with economic development objectives, it provides various loans and government guarantees in order to increase the international efficiency and reduce the risk exposure of companies operating in Hungary.
MFB wishes to render the support for state development objectives subject to economic business management as a requirement in an efficient manner. At the same time, it wishes to operate as an 'expert' and service provider financial institution.
MFB finances its economic development operations from three distinct sources:
- its own loans acquisitions as well as securities issued on the domestic and international markets with state guarantees;
- development resources of international organizations (e.g. EU);
- budget resources allocated for special purposes.
The bank treats the resource structure, objectives and assessment of each individual project independently of each other. This ensures transparency, in particular by allowing easier assessment of the degree to which a given project is measuring up to economic objectives.
MFB defines three product groups (priorities) according to which the already existing products and those of under preparation can be grouped.
- Product group for economic development. This group is aimed at supporting efficient activities with big development potential. These priorities are partly connected to EU development aims, but are partly independent from them;
- Product group for 'catching up' connected to EU accession and EU and related state aids. This group is connected to e. g. products for technology development; programs for supporting agricultural production and food-processing industry, products for improving energy efficiency and developing educational infrastructure;
- Product group of special purpose. This group is aimed at economic development according to special considerations.
Magyar Fejlesztési Bank Zrt.
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