On 17 June 2022, the European Commission approved €226 million in state aid for Hungary’s SMEs.

Approved under the Temporary Crisis Framework, this support is available to Hungarian SMEs across all sectors except credit and finance, and aims to help those companies suffering both liquidity and sanction-related shortages due to the war in Ukraine.

The aid programme is for guarantees on new loans and will be administered by the Rural Credit Guarantee Foundation AVHGA, with the aim of ensuring liquidity is available for companies in need.

Eligible firms will be entitled to receive loans with a State guarantee for up to 90% of the loan. The loans will mature in six years and will be granted no later than 31 December 2022.

The maximum amount per beneficiary will be equal to 15% of the firms average total annual turnover from the last three accounting periods, or equal to 50% of the energy costs incurred for the 12 month period up to the application for aid.

In addition, for applicants from sectors heavily affected by the war in Ukraine, the amount of the loan may be increased to cover liquidity needs for up to 12 months.

More information on the specifics of the programme can be found HERE.

Contact our team today to find out exactly how we can help you

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2022. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.