In December 2008, the government of Hungary announced a change in private-sector financial support.



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the letter from the EC to Hungary - Brussels, 12.2.2009 C(2009) 993 final). Available from < >
the letter from the EC to Hungary - Brussels, 03.09.2009 C(2009)6740 final. Available from : < >
the letter from the EC to Hungary - Brussels, 17.12.2009 C(2009)10276 final. Available from : < >
the letter from the EC to Hungary - Brussels, 23.06.2010 C(2010)4258 final. Available from : < >
the letter from the EC to Hungary - Brussels, 7.12.2010 C(2010) 8811 final. Available from : < >
the letter from the EC to Hungary - Brussels, 23.06.2011 C(2011)4510 final. Available from : < >
the letter from the EC to Hungary - Brussels, 8.3.2012 C(2012) 1518 final. Available from : < >

Inception date: 01 Jan 2009 | Removal date: 31 Jul 2013

Capital injection and equity stakes (including bailouts)

On 22 December 2008 Hungary notified a scheme consisting of two measures designed to ensure the stability of the Hungarian financial system. (State Aid N 664/2008)
The notified scheme comprises two measures:
A. Recapitalization: The Hungarian Government will increase the capital adequacy ratio of credit institutions of systemic importance by providing Tier 1 capital in the form of preference shares. This measure aims at building and maintaining an adequate buffer of capital for the credit institutions concerned, and thus enhancing their liquidity and their ability to lend to the real economy.
B. Guarantee: The Hungarian Government will provide, in return for an appropriate remuneration, a State guarantee for debt instruments with a maturity of between three months and five years designed to make funding available to credit institutions.
Beneficiaries of the scheme are fundamentally sound credit institutions of systemic importance established in Hungary. Article 1(1) of the Act empowers the Hungarian State to undertake the recapitalization of certain financial institutions with an overall budget of HUF 300 billion (or about EUR 1.04 billion).
The Commission found that the scheme constitutes aid to the credit institutions concerned, pursuant to Article 87(1) EC and gave the following assessment:
"The recapitalization and the guarantee to the credit institutions allow the beneficiaries to secure the required capital as well as liquidity on more advantageous conditions than would otherwise be possible in the light of the prevailing conditions in the financial markets. This gives an economic advantage to the beneficiaries and strengthens their position compared to that of their competitors in Hungary and other Member States and must therefore be regarded as distorting competition and affecting trade between Member States. The advantage is selective since it only benefits the beneficiaries of the scheme and is provided through State resources." (par. 40 of the letter from the EC to Hungary - Brussels, 12.2.2009 C(2009) 993 final).
Article 87(3)(b) of the EC Treaty enables the Commission to declare aid compatible with the Common Market if it is "to remedy a serious disturbance in the economy of a Member State." This aid has to be applied restrictively and must tackle a disturbance in the entire economy of the Member State according to the interpretation of the Article 87(3)(b) by the Court of First Instance.
The Commission referred to its Communication on the financial crisis (Temporary Framework) and concluded that the Measure complies with the conditions laid therein. Therefore, despite the measure constituting State aid pursuant to the Article 87(1) EC, it is compatible with the Common Market according to the Article 87(3)(b) EC Treaty. The Commission raises no objections against the measure at issue and authorizes it as emergency intervention in the face of the current financial crisis. (par. 42-64of the letter).
Prolongation and Modification of Hungarian Bank Support Scheme - State Aid N355/2009
On 15 June 2009 Hungary notified a request to prolong and modify its guarantee and recapitalisation scheme for banks in Hungary. The modification relates to the subscription price of the preference shares for the recapitalisation of banks. More precisely,Hungary would like to delete from the decision the reference that the subscription price will be equal to the nominal value of the recapitalisation.
The Hungarian authorities have the intention to extend the temporal scope of the guarantee scheme to 31 December 2009.
The Commission concluded that the prolongation in question did not alter its previous assessment (see above) that the measures under the Scheme are compatible with the common market.
Second, Third, Fourth, Fifth and Sixth Prolongation of Hungarian Bank Support Scheme - State Aid N662/2009,N224/2010, N536/2010, SA.32995 (2011/N) and SA.34077 (2011/N)

From 27 November 2009 to 14 December 2011, Hungary notified five supplementary requeststo prolong the recapitalisation measure of the Scheme. The measure will therefore be effective until 31 June 2012.
In each case, the Commission concluded that the notified extension of the recapitalisation measure under the Scheme was compatible with the internal market pursuant to Article 107(3)(b)TFEU. The Commission has accordingly decided not to raise objections.
Final Prolongation of Hungarian Bank Support Scheme - SA.36088
On 31 January 2013, Hungary finally notified a last prolongation until 30 June 2013. (SA.36088)

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.