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Kopernikusz

Support schemes PDF Print E-mail
By joining the European Union plenty of EU subsidy possibilities have become available besides the national co-financing options.
In all cases the Hungarian government provides the necessary share to the sources coming from the Union. The current subsidy options available in Hungary can be divided into three categories:

1. Nonrefundable subsidies
2. Interest subsidies
3. Loans on preferential terms

The nonrefundable subsidies form the biggest part of the financing vehicles. In order to get subsidies an application must be submitted. According to the European Union directives the definition of the calling for tender and the tendering procedure belongs to the scope of the ministries. The main feature of these subsidies is that they are post-financed in almost every case. This means the applicant initially has to pay all the invoices with regards to the project, and can apply for the subsidy by presenting them.
The applying organization must meet a strict set of conditions in order to obtain subsidy eligibility. The set of conditions includes legal and financial stability, and the accurate planning of the project as well from professional as from financial point of view. The nonrefundable subsidy must not be considered as “money free of charge”. General opinion is that a tender procedure can be performed without any problems if the preparations were satisfactory and at least 90 % of the whole project-budget is at hand.

The system of interest subsidies is also a subsidy option. In this case the applicant’s loan is supported by the government by a certain percent of the payable interest. The subsidy is transferred subsequently on the basis of the actual interest paid to the credit institution according to the loan agreement. Generally the subsidy only applies for HUF-based loans.

More and more banks offer – mainly in cooperation with the government – loans on preferential terms for enterprises, especially small end medium enterprises. Nowadays, the applicable loan options with better terms than the market depend on the nonrefundable subsidies in many cases. So, in case an organization possesses a subsidy contract with a Hungarian or EU institution, it finds more favorable financing conditions also for the deductible.
 
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