The Minister for National Economy and Energy, who holds the ownership rights over the Hungarian Development Bank (MFB), increased the MFB’s capital by approximately HUF 645 billion (EUR 1.7 billion).
Based on the founding resolution mentioned above, the share capital of MFB Zrt. increased by approximately HUF 230 billion (EUR 633.6 million) to HUF 750 billion (EUR 2 billion).
With the approval of the European Commission, the state implemented the bank’s capital increase using funds from the EU Recovery and Resilience Facility (RRF), as the conditions for receiving other RRF funds must be met by August 31. The capital increase will enable MFB to provide targeted and effective support for the development of SMEs and micro-enterprises, promote venture capital and growth investments as well as measures to create affordable housing, and strengthen its cooperation with the European Investment Bank (EIB).
According to MFB, these programs could have a positive impact on the Hungarian economy as a whole, including by strengthening supply chains, exports, investment and labor mobility. Preliminary calculations indicate that the capital increase measures will increase GDP by 0.22% by 2027, gradually rising to 0.57% by 2030.
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