Balázs Rákossy, State Secretary for the use of EU funds at the Ministry of Finance announced the first recipients of support from the call for proposals under the the Operational Program for Economic Development and Innovation (GINOP).
The total amount of the tender is HUF 2 billion and operates on the basis of conditional repayment. Its purpose is for technological modernization, and now six micro, small and medium-sized enterprises have received government development funds worth a total of HUF 230 million in the framework of the call for “Supporting the technological modernization of micro, small and medium-sized enterprises.”
With its innovative form of financing, the secretary said that the program is unique in the European Union, citing Portugal as the only other member state that has used similar schemes to support companies.
The winning companies can use the funds to purchase new equipment and machinery, develop new technology systems and realize related IT developments, Rákossy noted. He then detailed how the companies may be eligible for partial or complete exemption of aid repayment. The applicant’s performance in the post-project maintenance period will be compared with its status at the time of submission via pre-defined performance goals. Based on this, a decision will be made on the reimbursement rate, that is, how much (if any) the recipient needs to pay back.
Clearly, such a reimbursement system will motivate companies to effectively implement their projects and reach their goals. The government thus hopes to encourage tangible improvements.
Under this tender, more than fifty companies are expected to modernize their technology. If the expected results are achieved, then similar tenders will take place in the future with an even higher budget, Rákossy said.