Financing SMEs and Entrepreneurs 2022

18. Hungary

Key facts on SME financing

According to the preliminary data of the Hungarian Central Statistical Office, at the end of 2019, 836 020 enterprises operated in Hungary, 97.72% of which (817 012 enterprises) qualified as SMEs. Based on the European Commission’s data on the business economy that ensures comparability between EU member states, the number of persons employed by Hungarian SMEs somewhat exceeds the EU average. Meanwhile the value added generated by these SMEs stands slightly below the EU average.

Hungary had a significantly lower economic downturn in 2020 (-5.0%) than the EU average (- 6.2%), partly due to the economic protection measures and industry's favourable performance in comparison to the rest of the EU.

Despite the coronavirus outbreak, investment rates remained high in Hungary at 27.5% as a percentage of GDP. The pick-up in investment performance was mainly driven by real estate (+12%), public administration (+33%), education (+31%) and, partly related to the epidemic, health (+45%) branches. The high level of investment can also be the result of conditional grants to enterprises based on the implementation of projects within a limited timeframe, which may have incentivised and accelerated investment decisions from SME owners.

The share of high-tech companies in exports is high in Hungary, providing a good basis for increasing the share of high value added activities.

The unemployment rate in Hungary (4.3%) was the 5^th lowest in April among EU member states. There is a strong labour market with sufficient labour market reserve for restarting the economy.

SME loans (loans up to EUR 1 million) expanded by 13.2% in 2020. The average interest rate of forint SME loans experienced a slight increase, at 2.6% by the fourth quarter of 2020. The average interest rate of high-amount HUF loans increased to 2% by the end of 2020.

Despite the COVID-19 pandemic shock, venture activity experienced a strong increase throughout Europe and in Hungary in 2020 compared to the previous year. During 2020, EUR 226.3 million was invested into Hungarian companies through 236 transactions. There was a 15% increase in the total number of transactions, and 36% increase in the total invested amount compared to 2019. In 2020 the total amount of newly raised funds took a hit.

In case of Hungarian companies receiving investments, the two largest sectors by total invested amount were Financial and Insurance activities and ICT (Information and communications technology), which together accounted for 52% of total investment value and 41% of total number of investments. In 2020, the largest transactions (considering average deal size) occurred in the Financial and Insurance activities and Transportation, with average deal size of EUR 4.1 million and EUR 2.0 million respectively. The most significant difference between industry and market statistics were reported in the Financial and Insurance sector, showing a larger interest for companies operating in this sector by foreign investors. In this sector, the average deal size was EUR 4.1 million according to market statistics versus 1.4 million according to the industry statistics.

As a response to the COVID-19 crisis, the measures introduced by the Government (under the Economic Protection Action Plan) had the objective of preserving jobs and supporting businesses with liquidity problems. Since March 2020, the government mobilised in total HUF 9 500 billion through various measures to stimulate the economy, which could enter the economy by the end of 2021.

In 2020, it was decided to launch investment support programmes with an amount of nearly HUF 1 000 billion, which could lead to nearly HUF 2 000 billion development in the near future.

The Economic Relaunch Action Plan was designed to gradually ease conditions and relaunch economic activities in three phases. In the first phase, HUF 100 billion in Interest Free Restart Fast Loan were provided by the Hungarian Development Bank (MFB). The second phase focuses on strengthening higher education, and the third phase concentrates on enhancing green energy, circular economy construction and full digitisation of the economy.

Table 18.1. Scoreboard for Hungary

Indicator	Unit	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Debt
Outstanding business loans, SMEs	HUF Billion	5 280	5 823	5 379	4 783	4 797	5 014	5 064	4 831	4 942	4 411	4 674	4 691	5 122	5 626
Outstanding business loans, total	HUF Billion	8 466	9 613	8 959	8 770	8 825	7 892	7 648	7 761	7 355	7 073	7 545	8 562	8 715	9 836
Share of SME outstanding loans	% of total outstanding business loans	62.36	60.58	60.05	54.54	54.36	63.53	66.21	62.25	67.20	62.37	59.31	54.7	58.77	57.2
New business lending, SMEs	HUF Billion	3 851	4 384	3 660	3 531	3 585	3 870	4 662	4 302	3 665	4 187	4 443	3 743	4 670	4 738
Short-term loans, SMEs	HUF Billion	2 473	2 966	2 832	2 775	2 767	3 052	2 654	2 570	2 424	2 708	2 727	2 002	2 417	2 113
Long-term loans, SMEs	HUF Billion	1 377	1 418	828	756	818	818	2 008	1 732	1 241	1 478	1 274	1 741	2 252	2 624
Share of short-term SME lending	% of total SME lending	64.23	67.66	77.37	78.59	77.18	78.86	56.93	59.75	66.14	64.69	68.16	53.48	51.77	44.61
Government loan guarantees, SMEs	HUF Billion	308.8	352.1	409.2	377.1	343.4	251.9	350.0	346.2	348.7	469.3	525.7	725.5	707.1	1 193
Government guaranteed loans, SMEs	HUF Billion	381.4	436.4	600.3	472.0	437.2	314.8	458.0	433.8	429.4	568.6	731.0	894.2	934.8	1 561
Non-performing loans, total (amount)	HUF Billion	..	..	..	832	1 155	1 272	1 124	961	697	577	526	472	334	336
Non-performing loans, total	% of all business loans	3.10	4.70	10.10	12.8	17.4	17.7	16.1	13.7	9.6	5.4	3.3	5.5	3.83	3.42
Non-performing loans, SMEs	% of all SME loans		5.40	8.90	12.8	15.9	20.5	18.6	20.7	13.7	6.3	4.4	3.5	6.18	1.39
Interest rate, SMEs	%	10.19	11.25	12.31	8.99	9.38	9.7	7.4	5.1	4.7	4.2	3.3	2.44	2.97	1.88
Interest rate, large firms	%	8.97	10.28	11.07	..	..	8.9	5.9	4.1	2.4	2.8	1.8	2.0	1.3	1.58
Interest rate spread	% points	1.22	0.97	1.24	..	..	0.80	1.50	1.00	2.30	1.40	1.50	0.44	1.67	0.30
Collateral, SMEs	% of SMEs needing collateral to obtain bank lending	..	..	..	..	..	..	..	71	64.5	60.1	53.4	..
Rejection rate	1-(SME loans authorised/ requested)	..	..	..	..	..	..	68.8	67	84.4	71.6	49.2	..
Utilisation rate	SME loans used/ authorised	..	..	..	..	..	..	81.5	..	..	..	..	..
Non-bank finance
Venture and growth capital	HUF Million ('000 000)	3 949	13 782	720	6 982	11 308	19 361	15 880	18 759	27 742	12 070	11 470	28 661	28 803
Venture and growth capital (growth rate)	%, Year-on-year growth rate	..	249.00	-94.78	869.72	61.96	71.22	-17.98	18.13	47.89	-56.49	-4.97	149.88
Leasing and hire purchases	HUF Million ('000 000)	..	..	..	..	..	..	..	..	..	490 531	483 259	538 370	677 449	734 320
Factoring and invoicing	HUF Million ('000 000)	..	..	..	..	..	..	..	..	..	46 472	107 852	66 718	55 208	41 448
Other indicators
Payment delays, B2B	Number of days	16.30	19.00	19.00	15.00	22.00	20.00	..	17.40	17.40	4	-1	5	1	18
Bankruptcies, total	Number	153	168	212	232	279	301	376	644	488	377	322	401	370	225
Bankruptcies, total (growth rate)	%, Year-on-year growth rate	..	10.35	25.65	9.5	20.4	7.9	24.7	71.3	-24.2	-22.9	-14.4	24.34	-8	-39

Source: See Table 18.5.

SMEs in the national economy

Hungary defines SMEs using the standard criteria provided by the European Union. An SME is an enterprise with fewer than 250 employees and which has an annual turnover less than or equal to EUR 50 million. The definition is stipulated in Law No. XXXIV. of 2004 on Small and medium–sized enterprises and support of their development.

According to the preliminary data of the Hungarian Central Statistical Office, at the end of 2019, 836 020 enterprises operated in Hungary, 97.72% of which (i.e. 817 012 enterprises) qualified as SMEs. Based on the European Commission’s data on the business economy that ensures comparability between EU member states, the number of persons employed by Hungarian SMEs somewhat exceeds the EU average. Meanwhile the value added generated by these SMEs stands slightly below the EU average.

Table 18.2. SMEs in Hungary 2020, basic figures

	Number of enterprises			Number of persons employed			Value added
	Hungary		EU-28	Hungary		EU-28	Hungary		EU-28
	Number	Share	Share	Number	Share	Share	Billion €	Share	Share
Micro	570,622	94.5 %	93.3 %	946,331	33.7 %	29.6 %	14.5	20.9 %	18.7 %
Small	27,839	4.6 %	5.7 %	529,566	18.9 %	19.7 %	12.0	17.3 %	17 %
Medium-sized	4,434	0.7 %	0.9 %	451,996	16.1 %	15.8 %	11.8	16.9 %	17.3 %
SMEs	602,895	99.9 %	99.8 %	1,927,893	68.7 %	65.2 %	38.2	55.1 %	53 %
Large	883	0.1 %	0.2 %	876,359	31.3 %	34.8 %	31.2	44.9 %	47 %
Total	603,778	100 %	100 %	2,804,252	100 %	100 %	69.4	100 %	100 %

Source: These are estimates for 2020 produced by DIW Econ, based on 2008-2018 figures from the Structural Business Statistics Database as well as provisional data for 2019-2020 from the National Accounts database and the Short-Term Business Statistics Database (EUROSTAT). The data cover the 'non-financial business economy', which includes industry, construction, trade, and services (NACE Rev. 2 sections B to J, L, M and N), but not enterprises in agriculture, forestry and fisheries and the largely non-market service sectors such as education and health. The following size-class definitions are applied: micro firms (0-9 persons employed), small firms (10-49 persons employed), medium-sized firms (50-249 persons employed), and large firms (250+ persons employed).

Macro-economic overview1

In 2020 , GDP contracted by 5% according to the unadjusted data, and by 5.1% according to seasonally and calendar adjusted data. Meanwhile, the Union's economy also shrunk: according to Eurostat's flash estimate, Member States' economies fell by an average of 6.1% last year, seasonally adjusted. The Hungarian economy was, thus, less affected by the epidemic in 2020 than the EU average, partly due to economic protection measures and industry's favourable performance in European comparison.

In 2020 net lending of Hungary was 2.1% of GDP, while the deficit of the current account amounted to 0.1% of GDP. The deficit of the general government sector in 2020 was 8.1% of GDP; the general government debt-to-GDP ratio increased to 80.4%. It is lower than the EU-28 average, which is 90.8%.

The unemployment rate in Hungary (4.3%) was the 5^th lowest in April among EU member states. There is a strong labour market with sufficient labour market reserve for restarting the economy.

Despite the coronavirus outbreak, investment rates remained high in Hungary (27.5% as a percentage of GDP).

In March 2021, compared to the same period of the previous year, in EUR terms the value of exports increased by 22.7%, imports by 17.3%. The balance of external trade in goods improved by EUR 548 million. The surplus on external trade in goods amounted to EUR 876 million in March. In 2020, the value of exports decreased by 4.3%, imports by 5.7% in 2020. The balance of external trade in goods has improved for the first time in three years, by EUR 1.4 billion, resulting in a EUR 5.7 billion surplus. Previously, Hungarian manufacturing output and exports fell as a result of declining external demand and domestic plant capacity reduction. Shrinking domestic demand resulted in decline of imports.

The share of high-tech companies in exports is becoming significant in Hungary, providing a good basis for increasing the share of high value added activities. In terms of export structure, the share of high-tech companies stood at 69.6% of medium and high-tech products, which is above the EU average (56.2 %) and V4s’ indicators.

It was also recognition of the effectiveness of Hungarian economic policy that in February 2020, Standard & Poor's further improved its ratings for Hungary. This year the Standard&Poor and Fitch Ratings reaffirmed the Hungarian sovereign debt ratings with an unchanged stable outlook. In September 2020, Moody's credit rating for Hungary was set at Baa3 with positive outlook.

SME lending2

Corporate outstanding loans expanded in 2020, although at a lower rate compared to 2019. While in 2020, corporate outstanding loans stood at HUF 780 billion, in 2019 they were at HUF 1044 billion, which means a 9.4% annual growth. The expansion is a result of mainly local currency loans that registered 20% increase thanks to the introduction of loan schemes and loan guarantees. In foreign currency loans there was a subtle, 4% decrease. The expansion of corporate bank loans in the SME sector was 13.2% during 2020. Corporate clients used less credit moratorium. The quarterly credit growth was mainly driven by the HUF and SME loans. As a result of the public and central bank loan programs there was a HUF 244 billion expansion in the SME sector in the fourth quarter of 2020. The quarterly loan expansion was highly driven by measures launched due to the negative economic impacts of the coronavirus, e.g. credit moratorium, “NHP Hajrá” construction and public loan and guarantee programs.

The volume of new loans significantly exceeded the value of the same period in the previous year. In 2020 companies made new loan contracts with credit institutions of HUF 3370 billion value, an 18% growth compared to the previous period. Loan contracts made in the context of “NHP” (Növekedési Hitelprogram) amount approximately to HUF 660 billion, increasing to approximately 58% of new loans, and 90% of SME contracts in the fourth quarter of 2020.

Figure 18.1. Growth rate of outstanding loans

Corporate and SME sector

Note: Transaction based, prior to 2015 Q4 data for SMEs are estimated based on banking system data.

Source: MNB

Statlink

Credit conditions and interest rate

In the third quarter of 2020, several banks made their corporate credit conditions stricter. Most credit institutions attributed the stringent conditions to industry-specific problems, the deterioration of the economic prospects and the major change in risk tolerance. The minimum level of creditworthiness and the maximum of the credit amount were the main aspects that banks tightened. In the first quarter of 2021 credit standards were eased in terms of loan maturity and the amount.

Figure 18.2. Changes in credit conditions in the corporate segment

Note: Net ratio is the difference between tightening and easing banks, weighted by market share.

Source: MNB, based on bank's responses.

Statlink

In the third quarter of 2020 credit conditions have been tightened in all corporate size categories, with major tightening in the conditions of commercial real estate loans, mainly in the first quarter of 2021 (as reported by 61% of banks). 17% of banks expect further stricter measures for medium and large enterprises, while 10% of banks expect the conditions to be loosened for micro and small enterprises. When it comes to commercial real estate loans, conditions can remain unchanged.

The average interest rate of euro and forint loans below EUR 1 million decreased quarter-on-quarter by 0.2 percentage point, and thus stood at 1.6% and 2.6%, respectively, at the end of 20203. The average interest rate of high-amount HUF loans increased to 1,96% by the end of 2020. The average interest rate on high-amount euro loans sank to 1.6% at the end of 2020..

Alternative sources of SME financing

Venture Capital Market

Despite the COVID-19 shock in Q1, venture activity in 2020 experienced a strong increase throughout Europe and in Hungary compared to 20194.

According to the Hungarian market statistics, during 2020, EUR 226.3 million was invested into Hungarian companies through 236 transactions. There was a 15% increase in the total number of transactions, and 36% increase in the total invested amount compared to 2019. As a result, the average deal size increased by 18% from 2019 to 2020. The total amount in 2020 was the second highest value reported over the past ten years.

According to the Hungarian industry statistics, in 2020, 245 investments were executed by Hungarian investors either in the domestic market or abroad (16% higher than in 2019). Total value of investments grew from EUR 156.0 million to 192.1 million between 2019 and 2020, resulting in a 7% increase in the reported average deal sizes compared to 2019 showing a slight increase in appetite for larger investments by Hungarian VCs.

The total amount invested by venture capital funds has grown 35% compared to previous year, which is a continuation of the trend in the previous two years when more than EUR 1100 million was raised by Hungarian venture funds. A strong year is expected for Hungarian Venture Capital, as so far Hungarian funds have raised a little over EUR 400 million. Early stage venture transaction are still dominating the market, as they increased the number of deals from 144 to 174, while the number of later stage deals remained flat compare to 2019. It is also worth to mention that the amount of growth equity investment has more than doubled while the number of deals stayed the same as in 2019. The total amount invested by local VCs outside Hungary almost doubled reaching EUR 32 million , indicating that a growing number of local VCs were testing themselves in the neighbouring countries.

In 2020, the total amount of newly raised funds took a hit, which can only be partially explained by the COVID-19 pandemic and the high base from previous years. In 2020, most equity investments were provided mostly by government agencies and corporates.

Figure 18.3. 2020 Invested capital by investment stage - market statistics

In thousand EUR

Statlink

In case of Hungarian sectors receiving investments, the two largest sectors by total invested amount were Financial and insurance activities and ICT (Information and communications technology) that together accounted for 52% of total investment value and 41% of total number of investments (Table 19.3). In 2020, the largest transactions (considering average deal size) occurred in the Financial and insurance activities and Transportation, with average deal size of EUR 4.1 million and EUR 2.0 million respectively. The most significant difference between industry and market statistics were reported in the Financial and insurance activities sector, showing a larger interest for companies operating in this sector by foreign investors. In this sector, the average deal size was EUR 4.1m according to market statistics versus 1.4m in the industry statistics.

Table 18.3. Amount of investment allocated to sectors

	2019				2020
	Industry statistics		Market statistics		Industry statistics		Market statistics
Amount (million Euros)	Number of companies	Amount (million Euros)	Number of companies	Amount (million Euros)	Number of companies	Amount (million Euros)	Number of companies
Agriculture	153	1	153	1	1 757	3	1 757	3
Business products and Services	63 727	45	65 030	45	25 687	34	25 687	34
Chemicals and materials	-	-	-	-	1 240	1	-	-
ICT	44 234	72	44 237	64	62 720	87	52 996	80
Construction	100	1	100	1	6 465	8	6 465	8
Consumer goods and services	19 946	51	19 946	51	29 762	50	22 921	46
Energy and environment	10 784	7	18 809	8	9 558	7	10 197	8
Financial and insurance activities	9 128	11	9 128	11	20 417	15	65 173	16
Real estate	30	1	30	1	3 841	6	3 841	6
Biotech and healthcare	4 967	16	5 717	17	11 402	24	17 946	25
Transportation	2 936	7	2 825	6	18 300	9	18 300	9
Other	-	-	-	-	1 000	1	1 000	1
Total investment	156 005	212	165 976	205	192 148	245	226 283	236

The factoring market5 has been adversely affected by the coronavirus pandemic in several respects. The moratorium on loan repayments introduced in March 2020 increased the amount of free liquidity assets in companies, as evidenced by a significant increase in deposits. As a result, many companies made much less use of the factoring possibilities at their disposal than before. In addition, the crisis propelled the use of loan guarantees which limited the growth potential of factoring turnover, albeit temporarily.

Government policy responses

The measures introduced by the Government under the Economic Protection Action Plan have the objective to preserve jobs and support businesses with liquidity problems. Since March 2020, the government mobilised 9500 billion forints through various measures to stimulate the economic recovery.

In 2020, it was decided to launch investment support programmes in an amount of nearly HUF 1 000 billion, which could lead to nearly HUF 2 000 billion development in the near future.

The measures introduced by the Government under the Economic Protection Action Plan are designed to preserve jobs and support businesses with liquidity problems. Since March 2020, the government has mobilised in total 9500 billion forints through various measures to stimulate the economy, which could enter the economy by the end of 2021.

In 2020, it was decided to launch investment support programmes in an amount of nearly HUF 1 000 billion, which could lead to nearly HUF 2 000 billion development in the near future.

The Economic Relaunch Action Plan was designed to gradually ease conditions and relaunch economic activities in three phases. In the first phase, one important measure was the investment of HUF 100 billion in Interest Free Restart Fast Loan by the Hungarian Development Bank (MFB). The second phase focuses on strengthening higher education, and the third phase concentrates on enhancing green energy, circular economy construction and full digitisation of the economy.

As of June 2021,, 5387.1 billion HUF claims have been accepted under the state-backed and MNB-supported loan and guarantee programmes, of which HUF 4 561.1 billion has been contracted.

The Hungarian Central Bank issued the Funding for Growth Scheme Go! (FGS) a refinance program for credit institutions lending to SMEs. FGS can be used for working capital purposes, and it counts with a total investment of HUF 3000 billion. (The programme started with HUF 500 billion, it was later expanded with HUF 1500 billion and another HUF 1000 billion of additional investments).

The Széchenyi Card program has been expanded with newly developed loan products that will facilitate access to liquidity for micro, small and medium-sized enterprises in a targeted way, typically it provides different credit products to businesses at customer rates between 0.0% and 0.1-0.5%.

Payment moratorium for enterprises is in effect between March 18 2020 and August 31 2021.

The Economic Relaunch Action Plan designed to gradually easing conditions and relaunching economic activities in three phases. In the first phase, one important measure was the investment of HUF 100 billion Interest Free Restart Fast Loan from the Hungarian Development Bank (MFB) . The second phase focuses on strengthening higher education. The third phase concentrates on enhancing green energy, circular economy construction and full digitisation of the economy.

Non-refundable investment enhancing subsidies for SMEs (e.g. competition enhancing support for businesses active in manufacturing and business services, Large Scale Enterprise Support Program, technological development of micro and SMEs, subsidies of the National Research and Development Fund.

• With a budget of HUF 100 billion, we launched the SME Efficiency Support Programme (GINOP-1.2.8-20, VEKOP-1.2.6-20). A total of HUF 128.13 billion was requested under 5436 aid applications, with 86% of applications coming from micro and small businesses.

  Sectoral support programmes 2020-21:

• Plastics aid scheme: supported the technological change and capacity-building of SMEs involved in banning single-use and other plastic products to enter to the market and, on the other hand, the production of single-use and other plastic products substitutes. The call amount: HUF 5.68 bn, number of applications submitted: 23, aid claims received: HUF 4.72 bn.

• Support for the health industry: In the first quarter of 2021, a support programme was launched to support the development of micro, small and medium-sized enterprises for the production of health products with a budget of HUF 23.12 billion. Number of grants awarded: 25 aid claimed for HUF 5,27 bn.

• Food Supplier Development Program: With a budget of HUF 35 billion, a support programme has been launched to support the development of the capabilities of supply companies in the food sector. 81 aid applications were started (completed online), covering around HUF 29.5 billion in aid claims.

• Support for micro, small and medium-sized enterprises in the fashion and design industry: The aim of the call is to support technological developments to promote the renewal of SMEs in the fashion and design industry, thereby strengthening their functioning and job retention and income-generating capacity. The amount of the call: about HUF 20 billion, number of applications submitted: 426, aid claims received: HUF 22.8 billion.

• Green National Champions Programme: support for technological development of manufacturing enterprises related to the green economy and industry. The total amount of the call is HUF 9.81 bn, the number of applications supported is 43, with a value of HUF 9.8 bn.

Figure 18.4. Trends in SME and entrepreneurship finance in Hungary

Source: See Table 18.4

Statlink

Table 18.4. Definitions and sources of indicators for Hungary's scoreboard

Indicators	Definition	Source
Debt
Outstanding business loans, SMEs	Amount of outstanding loans at the end of period (stocks). Gross bank and financial institution business loans to nonfinancial enterprises. In 2007-09 the data contains loans to all SMEs including financial ones, in 2010-12 only non-financial SMEs. Excludes sole proprietorships. Includes lines of credit, overdrafts, leases, business mortgages, business credit cards, factoring and securitised loans.	Hungarian National Bank (From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Outstanding business loans, total	Amount of outstanding loans at the end of period (stocks). Gross bank and financial institution business loans to all non-financial enterprises. Excludes sole proprietorships. Includes lines of credit, overdrafts, leases, business mortgages, business credit cards, factoring and securitised loans.	Hungarian National Bank (From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Short-term loans, SMEs	New loans (flow) equal to or less than one year. The data doesn’t include the loans of financial institutions. In 2007-09 the data contains loans to all SMEs including financial ones, in 2010-12 only non-financial SMEs.	Hungarian National Bank (From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Long-term loans, SMEs	New loans (flow) longer than one year. The data doesn’t include the loans of financial institutions. In 2007-09 the data contains loans to all SMEs including financial ones, in 2010-12 only non-financial SMEs.	Hungarian National Bank(From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Government loan guarantees, SMEs	New guarantees (flow) available to banks and financial institutions, guaranteed (partly) by government.	Administrative data from Hungarian Development Bank, Garantiqa Hitelgarancia Zrt, AFGHA (Agrárvállalkozási Hitelgarancia Alapítvány), and the EU SA financed Economic Development Programme
Government guaranteed loans, SMEs	New loans (flows) guaranteed (partly) by government.	Administrative data from the EU SA financed Economic Development Programme
Direct government loans, SMEs	Sum and number of new direct loans (flow) to SMEs from Hungarian Development Bank, microfinance programmes financed from state resources.	Administrative data from the Economic Development Programme
Non-performing loans, total	% of non-performing business loans within total business loan portfolio (90+ days delinquency ratio) to total business loans at the end of the year.	Hungarian National Bank (From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Non-performing loans, SMEs	% of non-performing business loans within total business loan portfolio (90+ days delinquency ratio) to total business loans at the end of the year.	Hungarian National Bank (From 1 October 2013 the Hungarian Financial Supervisory Authority works within the Hungarian National Bank)
Interest rate, SMEs	Average annual interest rate for all new SME loans.	Hungarian National Bank
Non-bank finance
Venture and growth capital	Venture and growth capital, total amount invested. Includes seed, start-up, early and later stage expansion capital (excludes buyouts, turnarounds, replacements).	Hungarian Venture Capital Association
Other indicators
Payment delays, B2B	Average number of days beyond the agreed date for business-to-business in 2008 and 2009. For 2007, average number of days beyond the agreed date for business-to-business, business-to-customer and public entities. All enterprises.	Intrum Justitia, European Payment Index 2014
Bankruptcies, total	Number of officially published bankruptcies and liquidations per 10 000 taxpayer enterprises.	National Tax and Customs Administration

Notes

← 1.  Ministry of Finance: Marcoeconomic Overview, May 2021

← 2.  https://www.mnb.hu/en/publications/reports/trends-in-lending/trends-in-lending-march-2021

← 3.  For more information please see: www.mnb.hu/en/publications/reports/trends-in-lending/trends-in-lending-march-2021

← 4.  https://www.hvca.hu/documents/Venture_Capital_and_Private_Equity_update_-_Hungary_2020.pdf

← 5.  For more information: https://piacesprofit.hu/kkv_cegblog/folyamatos-novekedesben-van-a-faktoringpiac/