Risk capital fund to support SMEs

On 22 March 2011 the National Development Agency, represented by Balázs Simó, Head of Managing Authority for International Co-operation Programmes and the Swiss Ambassador to Hungary, Christian Mühlethaler, signed the Project Agreement to support the small and medium-sized enterprises (SMEs) sector with 15.2 million CHF or over 3 billion HUF.
 The aim of the project is to ensure the long-term financing of SMEs in Hungary and thereby creating a large number of jobs. In Hungary SMEs provide employment for about 70 per cent of the workforce. This means that SMEs are a central pillar of the economy. The problem is that SMEs have great difficulty obtaining long-term capital or owners' equity. Investments in the equity capital of the company enable it to be creditworthy in the medium term, and this promotes company growth.
This is the background against which Switzerland is contributing CHF 15.2 million to the Hungarian "Euroventures Fund IV“. The project will secure the long-term financing of up to 27 innovative and growth-oriented companies. This means that numerous new jobs can be created and dynamic trade partners with increasing purchasing power can be established. Switzerland will also benefit from these new sales markets.

The "Euroventures Fund IV" is a public-private partnership within the Jeremie Programm. This means that at least 30 per cent of the capital is provided by private investors, who are encouraged to invest in this way because the state bears part of the risk.