Aid No XA 243/07

Member State Hungary

Region —

Title of aid scheme or name of company receiving individual aid „Sikeres Magyarországért” Agrárfejlesztési Hitelprogram (1-4. hitelcél)

Legal basis — az Európai Bizottság 1860/2004/EK rendelete (2004. október 6.) az EK-Szerződés 87. és 88. cikkének csekélyösszegű (de minimis) támogatásokra való alkalmazásáról a mezőgazdasági és halászati ágazatban (HL L 325., 2004.10.28., 4. o.) — A Magyar Fejlesztési Bank Részvénytársaságról szóló 2001. évi XX. törvény — A Magyar Köztársaság 2007. évi költségvetéséről szóló 2006. évi CXXVII. törvény 37. § — 2004. évi XXXIV. törvény a kis- és középvállalkozásokról, fejlődésük támogatásáról — A földművelésügyi és vidékfejlesztési miniszter …/2007. (…) FVM rendelete a „Sikeres Magyarországért” Agrárfejlesztési Hitelprogram szabályairól

Annual expenditure planned under the scheme or overall amount of individual aid granted to the company The total budget available for the loan scheme is: HUF 26 billion (EUR 105 million). The total budget is available from July 2007 to 31 December 2013 and is not broken down on an annual basis, but disbursed on the basis of claims made. The total budget is supported by a government exchange-rate under the Finance Act. This allows loans to be awarded at rates of interest which are lower than current market rates. The amount of aid included in the loans from this overall budget is calculated on the basis of the formula below: where: and TT aid amount Q total loan i reference rate i' preferential rate of interest P maturity (including grace period) F period rP r to the power of P rF r to the power of F The aid amount included in the loan guarantee is calculated on the basis of Regulation (EC) No 1860/2004

Maximum aid intensity Loans from the loan scheme may be provided in accordance with Commission Regulation (EC) No 1857/2006 on the application of Articles 87 and 88 of the EC Treaty to State aid to small and medium-sized enterprises active in the production of agricultural products and amending Regulation (EC) No 70/2001 (OJ L 358, 16.12.2006, p. 3). The maximum intensity of total aid from the national budget which may be provided for an individual project may not exceed: — in the case of the credit objectives in Article 3(1) (a), (c) and (d) of the FVM (Ministry of Agriculture and Rural development) decree: — 40 % of the value of the investment, — 50 % of the value of the investment in the case of regions and settlements classified as less favourably situated areas in accordance with FVM decree No 137/2004 (IX. 18.), — 75 % of the value of the investment in the case of regions and settlements classified as less favourably situated areas and 60 % of the value of the investment in other regions if the objective of the investment is to comply with recently introduced Community rules relating to environmental protection, the improvement of hygiene in the raising of livestock, or human treatment of animals. This increased rate of aid is solely applicable to extra costs incurred for the investment and is not applicable to those investments which result in an increase in production capacity. The maximum amount of aid granted to an individual enterprise must not exceed EUR 400 000 over any period of three fiscal years, or EUR 500 000 if the enterprise is situated in a less favoured area as defined in Article 36(a)(i), (ii) and (iii) of Council Regulation (EC) No 1698/2005, — in the case of the credit objective in Article 3(1) (b) of the FVM decree: — in the case of young farmers, 60 % of the investment in regions and municipalities in less favourably situated areas and 50 % of the investment in other regions, within five years of beginning production. The maximum aid for loans granted to individual enterprises may not exceed a limit of EUR 55 000

Date of implementation The loan agreement under the scheme may be concluded up to 31 December 2013

Duration of scheme or individual aid award Not more than 15 years. 31 December 2013

Objective of aid Primary objective: Aid towards investments made in agricultural holdings on the basis of Article 4 of Regulation (EC) No 1857/2006. Secondary objectives: Aid for small and medium-sized enterprises undertaking primary production of agricultural products with their headquarters in Hungary, or with their headquarters in the territory of the European Economic Area and a branch in Hungary. 1. Aid for investments in primary production of agricultural products with the aim of achieving the following objectives: 1.1. reduction of production costs; 1.2. improvement and re-deployment of production; 1.3. improvement in quality; 1.4. preservation and improvement of the natural environment; 1.5. improvement of hygiene conditions or of animal welfare standards. 2. Aid towards the investments required for young farmers to start production. 3. Aid for investments, using the loan, in agricultural resources. 4. Aid for investments made with the loan to provide additional resources in the context of calls to tender under the New Hungarian Rural Development Programme. Expenditure which is eligible under the scheme: — the construction, acquisition or improvement of immovable property, — the purchase of machinery and equipment, — in the case of intangible assets, the purchase of computer software, — up to 10 % of investment in the acquisition of land other than for building purposes, — the depreciable costs of the investment. Not eligible for financing under the scheme: — activity in connection with exports, — giving preference to domestic products over imported products, — aid which is determined on the basis of the price or the quantity of goods circulating on the market, — the purchase of production rights, animals and annual plants, — the planting of annual plants, — drainage works or irrigation equipment and irrigation works, unless such investment leads to a reduction of previous water use of at least 25 %, — simple replacement investments, — investments already initiated, — investments required for the manufacture of products which imitate or substitute for milk and milk products, — investments by enterprises in difficulty, — the purchase of a share in a business or of shares, in order to repay other loans, — the financing of VAT, unless the receiver of the loan is not entitled to reclaim VAT, — costs connected with a leasing contract for machinery and equipment (such as, for example, tax, lessor's margin, interest refinancing costs, general costs, insurance premiums). If common market organisation, or aid schemes directly financed by the European Agricultural Fund for Rural Development, set a limit on production, then investments resulting in an increase in production beyond this limit are not eligible under any objective

Sector(s) concerned Agricultural sector

Name and address of the granting authority Magyar Fejlesztési Bank Részvénytársaság Nádor u. 31. H-1051 Budapest Agrár-Vállalkozási Hitelgarancia Alapítvány Kálmán Imre u. 20. H-1054 Budapest Hitelgarancia Zrt. Szép u. 2. H-1053 Budapest

Internet address www.mfb.hu http://www.fvm.hu/main.php?folderID=1846&articleID=10747&ctag=articlelist&iid=1