Funding activities in general

Funding activities in general

•              MFB Zrt. raises funds in the domestic and international money and capital markets independently under its own name. The funds are used for financing development loan placements, programs and projects.

•              The repayment of funds is secured by the absolute direct suretyship provided by Hungary.

•              MFB Zrt. shall perform funding transactions denominated in foreign currency having a term of more than one year in consultation with the minister responsible for state finances (currently: Minister for National Economy) and the minister exercising the ownership rights (currently: Minister of National Development) over MFB Zrt. 

Legal framework

 

•              According to section 5 § (1) a) of the Act No. XX. of 2001 on the Hungarian Development Bank Ltd. the Hungarian State stands as joint and several guarantor on the account of the central budget for the fulfilment of payment obligations deriving from credits and loans taken, bonds issued and deposit received with the aim of fund raising, as well as for the fulfilment of payment obligations deriving from replacement costs of executed foreign exchange and interest swap transactions.

•               According to section 48 § (1) of the Act No. XC. of 2016 on the 2017 central budget of Hungary the aggregate amount of deposits received, credits and loans taken and bonds issued with the aim of fund raising and replacement costs of foreign exchange and interest rate swap transactions can be maximum 1,900,000,000,000 Hungarian Forints during 2017.