Strengthening resilience and improving competitiveness
The European Bank for Reconstruction and Development (EBRD) has adopted a new country strategy for Hungary which has been published on the Bank’s website today.
The strategy identifies the following priorities for the next four years:
- Strengthening banking sector resilience and the capacity to lend. To the extent that the measures agreed under the 2015 Memorandum of Understanding are consistently implemented, the Bank will be able to support the financial sector in areas such as privatisation and will also support sector consolidation and seek to help banks by providing long term funding on sustainable and commercial terms. The Bank will also continue its cooperation to enhance the framework in support of NPL resolution.
- Improving further Hungary’s energy security through strengthening market based regional interconnections, optimising the use of storage capacities and enhancing energy efficiency. The Bank will seek a role in supporting key energy infrastructure projects, including commercial gas interconnections to facilitate the two-way flow of gas and to develop a Hungarian gas exchange. With regard to energy efficiency, significant challenges remain and consequently the potential exists for the Bank to be actively involved in energy savings projects.
- Enhancing competitiveness and addressing innovation gaps. The EBRD will support local companies in catching up to the technological frontier, directly and through private equity channels, and will also help them become more competitive. The Bank will pay particular attention to companies operating in the less developed regions. It will also look to build more commercial and competitive market structures in targeted sectors, such as municipal and inter-city transport, to address inefficiencies, insufficient private sector participation and the need for restructuring.
The Bank and the Government of Hungary signed a Memorandum of Understanding in February 2015 aimed at enhancing the effectiveness of the Hungarian banking sector.
The EBRD has been operating in Hungary since 1991 and to date has invested €2.7 billion through 171 projects across all sectors of the economy.
Read the Strategy: English