Eximbank renews domestic working capital loans with thirteen financial institution
Hungarian Export-Import Bank Ltd. signed letters of intent with thirteen financial institutions on Wednesday morning at the Hungarian Academy of Sciences. At the signing ceremony of the Domestic Working Capital Loan Refinancing Credit Line now renewed under the Jövő Exportőre Alhitelprogram (Exporter of the Future Sub-credit Program) minister of foreign affairs and trade Péter Szijjártó, and operational deputy CEO of EXIM Dr. József Dancsó signed framework agreements worth a total of 84 million EUR, and 77 billion HUF with domestic financial institutions. The funds will be available as a subsidised funding alternative combined with simplified administrative processes to benefit primarily SMEs planning to engage in export.
Domestic businesses taking advantage of the applicable” de minimis” funding provided by the EU have access to credit with subsidised interest+ to help them cut down on production related costs thus improving their competitiveness in both domestic, and international markets.
In his ceremonial speech operational deputy CEO of EXIM Dr. József Dancsó emphasised that stability and predictability are a major advantage for the economy. He added: ”We can stand here today signing letters of intent for cooperation with 13 financial institutions worth EUR 84 million, and HUF 77 billion thanks to our product development efforts in 2017”. About 70% of the credit placed today reaches EXIM’s clients through refinanced banks, and leasing firms thus greatly contributing to the dynamic increase of SME client portfolio. Refinanced products (9 product types) are available to all domestic financial institutions; there are currently 33 partners relying on Eximbank’s refinancing including numerous leasing firms in addition to banks.
Also addressing the audience was minister of foreign affairs and trade Péter Szijjártó pointing out that the Hungarian economy is a particularly open economy, and its performance greatly depends on whether we manage to ratchet up Hungarian companies’ export efforts, and output, and whether we can attract more investment projects. ”Since 2014 Hungary has broken all its significant records of foreign trade year on year. That means that for the first time in its history Hungarian exports rose above 100 billion EUR this year. As regards investments, last year we broke our own record again with 96 major investment projects coming to Hungary totalling 3.5 billion EUR. Our achievements prove that we have made the good decision making foreign policy an instrument to boost foreign trade” – said Péter Szijjártó.
Signatory financial institutions included Budapest Bank Ltd., CIB Bank Ltd., Commerzbank Ltd., Erste Bank Hungary Ltd., Gránit Bank Ltd., MKB Bank Ltd., NHB Bank Ltd., Hungarian Oberbank AG Hungarian branch office, OTP Bank Plc., Raiffeisen Bank Ltd., Takarékbank Ltd., Sopron Bank Burgenland, and Unicredit Bank Ltd.
With the new framework product hitting the market the lending process will pick up speed, and clients will need less time to access the funds applied for, and will also need to complete less paperwork.