The Act on the Hungarian Export-Import Bank and the Hungarian Export Credit Insurance Company (Act XLII of 1994) established the Hungarian Export-Import Bank (Eximbank) and the Hungarian Export Credit Insurance Company (Mehib).
Both institutions are wholly state owned. The government continues to promote the organisations as playing a major role in boosting Hungarian exports.
Eximbank offers various export-related lending and guarantee products. It provides an advantage over conventional export financing from commercial banks by assuming long-term risk and by keeping the interest rates and service charges below the usual market level. Eximbank aims to finance the working assets needed for the production of the goods to be exported. Maturities range from two months to over two years with a value up to 85% of the export contract. The minimum credit is Ft20m for loans with a maturity of less than one year and US$50,000 for credits maturing in more than one year.
