The Hungarian Export-Import Bank (Eximbank) extended its export credit refinancing framework program. The related agreement with twelve credit institutions was signed by Minister for National Economy Mihály Varga and Eximbank CEO Roland Nátrán in Budapest.

As Roland Nátrán announced Eximbank – within the framework of the refinancing credit programme and along with the export refinancing credit facility with a tenor exceeding two years -- is introducing a short-dated credit facility with a tenor of less than two years. Enterprises can thus take out loans with 1.13-4.1 percent fixed CIRR rates for the entire loan duration, the CEO added.

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Mihály Varga stressed that over the past years the Government has introduced significant measures for boosting exports and export-financing. He emphasised that Eximbank’s export credit refinancing programme in 2013 added 0.8 percent to GDP and in 2014 it is expected to increase GDP by 1.1 percent, along with creating and safeguarding 80 thousand jobs. Budapest Bank, CIB, Commerzbank, Erste Bank, Gránit Bank, K&H Bank, MKB, OTP, Raiffeisen, Sberbank Hungary, Takarékbank and UniCredit joined the agreement, that is, the Eximbank credit facility will be made avaialable through these credit institutions.

Mihály Varga stressed that the Government is aiming to help as many enterprises as possible to join Hungarian exporters and to provide adequate financing. He recalled that in May 2012 the two Exim Group institutions, Mehib and Eximbank were also transformed and headed by the Ministry’s professional management a new, compact structure has been created. The Ministry had entrusted Eximbank to stimulate export activity by more efficiently meeting the demands of Hungarian exporters in general and SMEs in particular with regard to export financing and covering financial risks, and the bank has been successful from this aspect, he added.

In 2013-2014, the bank is expected to provide preferential loans of altogether HUF 500bn. These loans, the Minister stressed, will significantly facilitate the creation and maintaining of jobs, Mihály Varga said.

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The Minister also mentioned that the extension of the Paks power plant is expected to enhance the growth prospects of the Hungarian economy, because as energy generating capacity will be increasing Hungarian economic stakeholders will simultaneously gain cheap and competitively-priced electricity. Mihály Varga stated that the Ministry for National Economy has been elaborating – in cooperation with partner institutions – a programme designed to enable the exporting of extra electricity generated by capacity expansion. This will be possible through direct export or developing industrial divisions and sectors with high electricity demand.

Roland Nátrán expressed hope that the new programme will further fuel Hungarian exports and revive lending activity.

The primary objective of the programme, he stressed, is to improve the competitiveness of Hungarian exports, especially that of SMEs, as well as facilitating export-related investment projects and the creation of jobs.

The CEO of Eximbank emphasised that they have intended to formulate competitive and flexible conditions, and in this aspect the twelve partner institutions were also instrumental.

Eximbank is also planning to increase the number of refinancing loan products and of participating institutions, he added.

(Ministry for National Economy)