Grant and FI combination at final recipient level
25 Sep 2024
Dr. Annamaria Kiss, Senior manager at Hungarian national promotional bank MFB and Dr. Mark Bato, representing the Hungarian National Development Centre, ESIF regulatory Department, then presented the structure and mechanics of the combined financial instruments MFB has started to deploy in the 2021-2027 programming period. This presentation notably describes in details how grant elements have been structured to be compatible with the Hungarian legislation on capital rebates, while providing support and incentives to project promoters.
Hungarian authorities and MFB have used capital grants in such a way that it provides similar effects to capital rebates, notably thanks to the use of grace periods until verification of performance. The presentation also describes a variety of performance triggers that are used depending in the sectors supported and provides examples of contractual clauses applying to the grant elements. It also explains measures that may be taken in case of irregularity or default of projects promoters.
