MFB Periscope May 2017

The MFB Periscope is a monthly report published by the Hungarian Development Bank. Its aim is to analyse the most recent trends in the real economy and financial markets and to discuss also actual topics concerning the Hungarian economy and its broader economic environment.

MFB Periscope May 2017

Focus

 

 Hungarian companies’ plans for raising equity in 2017

 

According to MFB’s representative questionnaire-based survey (MFB INDICATOR) conducted in the autumn of 2016, only a fraction (4.5%) of businesses in Hungary intend to resort to external capital this year, however, their growth and renewal capacities make these corporations particularly important participants of the corporate sector. The highest percentages of companies interested in raising equity capital are to be found among small businesses, export-oriented enterprises and companies having their principal places of business in Central Hungary. One common feature of these businesses is that they find it difficult to access adequate funding sources.

The proportion of companies planning to raise capital decreased during the past year but in the wake of an increase in the average capital requirement the amount of the potentially required capital at a macro-level may be as large as about HUF 800-1,100 billion in 2017, some 2.1-3.0% of this year’s GDP.

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