Hungarian Development Bank capital increase

The Hungarian Development Bank (MFB) is undergoing a significant capital increase facilitated by funds from the European Union’s Recovery and Resilience Facility (RRF).

In August, the MFB raised its core capital to 750 billion forints following approval from the European Commission for a 2-billion-euro injection. This process was intended to meet an August 31 deadline to secure EU funds. During this period, the bank faced a legal dispute with Opus Titász Áramhálózati Zrt., which is contesting its exclusion from RRF-funded network development and smart metering tenders due to alleged transparency failures.

By September, Economic and Energy Minister István Kapitány detailed that the capital increase would total approximately 645 billion forints (1.8 billion euros). The government intends to use these funds to transform the MFB into a development partner, with a specific focus on supporting small and medium-sized enterprises (SMEs). The plan includes allocating 125 billion forints to SMEs to mobilize further private capital, alongside funding for strategic investments such as innovative companies and new rental housing or dormitory facilities.