The Final Deadline for the Financial Closure of NDP Projects Is Approaching – it Is Important to Settle Public Debts19 June 2009
Project hosts approved funding within the framework of the 2004-2006 National Development Plan, but who had payments suspended on account of public debts owed, have one more week left to settle the public debts they owe.
If applicants
approved funding fail to settle the public debts they have accumulated, they
will lose the part of the funding they have not yet received. This measure only
concerns 100 of the 20,000 NDP projects approved funding nationwide.
Project hosts implementing projects within the framework of the 2004-2006
National Development Plan that have not yet been financially closed have been
given an extension to be able to fully settle the accounts of their respective
project. This opportunity is provided in accordance with the decision made by
the European Commission in February this year, making it possible for Hungary
(as well as any member state that requests this) to extend the deadline for
settling accounts. Accordingly, the EU-funded part of expenditures arising up
to 30 June 2009 can be requested from the Commission. In the case of projects
also financed through national funding, it is only possible to claim those
expenditures from Brussels that intermediate bodies have paid to the project
hosts approved funding up to the cut-off date of 30 June 2009. The call for application
of a given tender scheme and its guidelines will determine whether the given
funding qualifies as national funding under EU rules.
On the grounds of the Government Decree* regulating public finance operating
procedures, payment of EU funding has been suspended in the case of projects
whose project hosts have unpaid overdue public debts. These project hosts shall
only receive funding** if they settle the public debts they owe up to the set
deadline date, i.e., up to 25 June 2009 in the case of projects financed
through national funding, or 30 September in the case of non-state funded
projects, whereby the given project host has notified the competent
intermediate body, for example, by sending a so-called “zero” tax statement.
Should public debts not be settled, the intermediate body is unable to pay the
amount of funding due; consequently, project hosts will unfortunately lose this
funding.
This measure only concerns 100 of the 20,000 NDP projects approved funding nationwide;
the amount of EU funding in question in the case of these projects is under 400
million HUF, which is merely 0.06% of the total NDP framework.
* Government Decree 217/1998 (XII. 30.)
** Government Decree 127/2009 (VI. 15.)