Hungary's MFB wires HUF 31B to restart stalled SME capital programme

What's the deal? Hungary's Magyar Fejlesztési Bank (MFB) has transferred nearly HUF 31 billion to the Demján Sándor Capital Programme's fund, restarting equity financing for approved domestic companies. The payment follows roughly HUF 45 billion already disbursed and could enable more than 120 contracts, according to the Hungarian Chamber of Commerce and Industry (MKIK). The first three contracts could be finalised the same day.

Why now? Funding had stalled, leaving a backlog of investment decisions awaiting payment. After reviewing the financial and operational standing of the companies involved, the MFB decided in August to continue financing and extended the programme's investment period.

What's the endgame? The capital scheme is one sub-programme within the broader Demján Sándor SME package, offering equity investment to Hungarian firms. It aims to fund investments while strengthening companies' capital positions and creditworthiness.

"The Demján Sándor Capital Programme has already provided significant financing to Hungarian businesses," said Elek Nagy, president of the MKIK. "Our goal is for the companies involved in the next phase to access the funds they need for their developments as soon as possible, once the necessary conditions are met" (translated from Hungarian).

What could go wrong? Payments still hinge on document checks, signed agreements, and satisfaction of disbursement conditions. The MKIK's fund manager is currently verifying contract documentation and whether investment terms are met; delays leave firms facing potential liquidity pressure.

The signal: The resumption is a catch-up for selected firms rather than a new expansion — intake for the capital scheme has been closed to new applicants. For Hungary's SME ecosystem, it is a test of whether promised state support reaches businesses promptly after an administrative interruption.

Read more: technokrata.hu

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