The EBRD’s Board of Directors has adopted a new three-year strategy for Hungary which outlines the Bank’s key priorities for its activities.
Hungary is among the most advanced transition countries in the EBRD region in terms of market reform. However, the Hungarian economy has been severely hit by the global financial crisis and recession in its main export markets, exposing vulnerabilities particularly in the financial sector. The impact of the crisis has also pointed to the urgent need for further structural reforms.
Crucial transition challenges for Hungary lie in strengthening the resilience of the financial sector; addressing deep-rooted inefficiencies in the public transport sector; enhancing energy security as well as securing and expanding the country’s role as an export platform of technology and skills-intensive products.
In line with the Bank’s new strategy, operations and policy advice in Hungary will be aimed at:
- supporting the recovery of the financial sector by providing targeted long-term financing and new products to selected financial institutions and facilitating the development of local capital markets
- providing long-term financing to promote public transport and municipal infrastructure investments with a focus on restructuring (thereby relieving associated budget pressure) and on potential for energy savings and emission reduction
- promoting investments in the diversification of energy supply, in energy efficiency and renewable energy to reduce energy intensity and meet environmental targets set to combat climate change
- providing support for local corporations to fund their investments with a focus on energy efficiency, research and development and innovation (leading to higher competitiveness), as well as a focus on the regional expansion of Hungarian companies.
To date the EBRD has committed approximately €2.5 billion across 164 projects in the financial, infrastructure, industry and energy sectors of the Hungarian economy.