EBRD adopts new Hungary strategy

The European Bank for Reconstruction and Development (EBRD) has created a new strategy for Hungary.

It has announced key new priorities for the next three years, focusing on the involvement of the private sector in the provision of public services, promoting diversification of the energy sector, and providing higher-risk products for local corporates to fund their development.

In particular, the EBRD is keen to encourage further public-private partnerships in infrastructure. It is also looking to promote investment in different sources of energy supply, such as renewable energy.

The bank will also look to provide products such as equity and structured debt and other higher risk financing tools to local corporates, and it will place greater emphasis on investments that support cross-border expansion.

EBRD will also work with local financial institutions to support new capital market products that can provide financing to small and medium-sized companies.

To date, the EBRD has invested over € 1.8bn in the country since it signed its first Hungarian project in September 1991.

Traditionally, the bank's activities focused on corporations, financial institutions and infrastructure and this is reinforced by the renewed strategy.

Now a member of the European Union, Hungary is expected to graduate from the EBRD by the end of 2010.