The overall amount of funding earmarked for trade development tenders aimed at expanding the sales and investment potentials of Hungarian SMEs was doubled to HUF 600 million by the Ministry for National Economy, Minister of State for Economic Regulation Kristóf Szatmáry said at a press conference.

The Minister of State stated that the trade development tender was announced last October, for which 174 applications have been submitted requesting HUF 2.5bn while originally a fund of HUF 300 million had been avaialable. The fund hereby increased to HUF 600 million will facilitate funding for 33 more applicants.

Kristóf Szatmáry emphasised that the Government intends to improve the competitiveness and export potential of SMEs. He added that some years ago the Ministry had launched trade development project tenders in cooperation with the Hungarian Investment and Trade Agency which programme was extended and reformed in 2013.

The tender, announced in autumn last year, aims to improve the competitiveness of Hungarian products and services and help them exploit investment opportunities.

The amount SMEs can win through the tender assists companies with experiences on export markets in expanding business relations and conquer new markets, and it helps budding enterprises make their first steps on foreign markets.

Kristóf Szatmáry said he is hoping that raising the amount of the fund will open a window of opportunity for several dozens of Hungarian MSEs to enter foreign markets with competitive products and thus they will add more to the growth of the national economy.

According to the press material prepared by the Ministry for the press conference, applicants can submit tenders for purchasing tangible assets or transport equipment, hiring, property investment as well as for R&D activities, in a combined bid or individually. The applicant is obliged to maintain the number of employees for the three business years after the project has been completed. As another requirement, the applicant is obliged to increase, in comparison to the year when the application is submitted, net export sales receipts by 5 percent by the end of the second year after the project has been completed.

The amount of non-refundable grants which can be requested through the tenders ranges between 2 and 60 million forints.

(Ministry for National Economy)