Economy & Policy

Seven measures to restart the economy

The government adopted another seven proposals from the Operational Group responsible for relaunching the economy.

Six of the seven government decisions will basically help Hungary win investment competitions in the future, Minister of Foreign Affairs and Trade Péter Szijjártó announced.

One of the government’s decisions concerns the development of the Hungarian building materials industry to reduce prices. He said that the Hungarian company Innoscitech is making an investment in Biharkeresztes. A 12,000-square-meter factory is being built for materials produced using special technology. The government will contribute HUF 5.5 billion to the HUF 14 billion investment, he added. 

The minister said the government’s other decision also specifically encourages investment in Hungary. Eximbank will provide preferential investment loans to Hungarian small, medium and large companies with another HUF 100 billion; the loans can be used especially for SMEs, as the interest rate is 0.1 percent. 

FM Szijjártó said that so far HUF 500 billion has been given to 1,000 Hungarian companies. He said the government has also decided to launch a development investment loan program for micro-enterprises; within the Széchenyi Card Program, HUF 50 billion will be allocated over 10 years to a Széchenyi Microcredit program. 

The government has additionally decided to speed up public procurements in order to make investments easy to schedule and carry out quickly. From now on, the state will use uniform tenders, which can also be called a blank tender, he said.

The cabinet will set up a national investment site search service as well. This will help companies looking to invest in Hungary by proposing the most favorable locations to invest, Szijjártó explained.

He said the government has decided that foreign-owned companies can employ foreign workers for up to 20 percent of their workforce instead of the previous 10 percent; this is to encourage foreign companies to expand here, which will also help boost employment among Hungarians.  

Lastly, the minister said the government will create a farmland capital fund, which will be established at Eximbank with a value of EUR 400 million. This will help the Hungarian food industry have the land necessary for a stable supply of raw materials.

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