Already HUF 6 billion funding was provided for state project owners with the assistance of the Own Resources Fund16 January 2013
In the first round nearly 300 approving support decisions were made with the assistance of the Own Resources Fund financed from the Hungarian budget. The decision was made last week Tuesday by Mrs. László Németh, Minister for National Development. The fastness of the system is also justified by the fact that the National Development Agency started the remittances immediately after the decisions had been made. Therefore, as of today the total amount of HUF 6 billion has been disbursed to the accounts of the respective project owners.
For the implementation of EU projects in most cases in addition to the support own resources are also required. A lot of municipalities as beneficiaries - often beyond their control – have fallen into a financial position in which the financing of their projects was at risk. In order that the developments already started and granted support could be continued, the Government decided to introduce the Own Resources Fund to remedy the lack of own resources.
At present more than 1000 own resources requests have been submitted to the National Development Agency (NDA), based on which HUF 11 billion own resources support can be paid out in the near future. In the framework of the New Széchenyi Plan this can result in the payment of HUF 60 billion in EU support with the assistance of the Own Resources Fund for EU Grants, which can be a solution for municipal and state projects that gut stuck due to the economic crisis.
With the present payment from the resources of the Own Resources Fund established in October nearly 300 state beneficiaries received HUF 6 billion as own resources support and this generates a total of more than HUF 34 billion payment for the projects together with the EU support.
The HUF 24 million remaining in the Own Resources Fund can be used until the depletion of the budget, but at the latest until 30th June next year. This also means that the municipalities and public beneficiaries compete with each other for drawing the funding of the Own Resources Fund. The efficient and timely use of the resources is up to the fastness of the municipalities, which is especially important also because it is not foreseeable if a funding framework of this size will still be available next year in the public budget. It is also important to highlight that the provision of resources from the Own Resources Fund is tied to criteria. The most important requirement is that the support is only available for 30 days and the support contracts of project owners that cannot submit the invoices about the own funds requested to the Intermediary Body will be repealed, the funding will be freed and a new project can be supported.
Due to the innovative amendment of the New Széchenyi Plan HUF 28 billion in EU payment is expected to be paid out during the remaining period of the year.