On Monday 13 July, the European Commission authorised Hungary to inject €2 billion in capital into the Hungarian Development Bank Magyar Fejlesztési Bank (MFB), through the revised post-Covid-19 recovery plan (see EUROPE 13893/21).
Thanks to this measure, the Hungarian bank will be able to finance various sectors facing market failures, such as infrastructure construction, agriculture, education, tourism, urban and rural development, the EU institution says.
In examining the Hungarian measure under EU State aid rules, the Commission considers that the Hungarian measure will facilitate development of economic activities, and that it is necessary, appropriate and proportionate, since it is limited to addressing market gaps.
In return for the European financial aid, Hungary will limit MFB’s financial activities to correcting market failures. (Original version in French by Mathieu Bion)