Information communicated by Member States regarding State aid granted under 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
Date: 2008-09-03
Institutions: European Commission
Subjects: Hungary, State aid, agricultural holding, aid to agriculture, aid to undertakings, control of State aid, exchange of information, small and medium-sized enterprises

3.9.2008

EN

Official Journal of the European Union

C 226/17

Information communicated by Member States regarding State aid granted under 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

(2008/C 226/05)

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-Szer-
ződés 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 támoga-

tásáról

— A földművelésügyi és vidékfejlesztési miniszter …/2007. (…) FVM rendelete

a „Sikeres Magyarországért” Agrárfejlesztési Hitelprogram szabályairól

Annual expenditure planned under
the scheme or overall amount of indi-
vidual aid granted to the company

for

the

available

total budget

is: HUF 26 billion
The
(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.

loan scheme

The amount of aid included in the loans from this overall budget is calculated
on the basis of the formula below:

where:

and

TT

Q

i

i'

P

F

rP

rF

aid amount

total loan

reference rate

preferential rate of interest

maturity (including grace period)

period

r to the power of P

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

C 226/18

EN

Official Journal of the European Union

3.9.2008

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 settle-
ments 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 settle-
ments 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 environ-
mental protection, the improvement of hygiene in the raising of live-
stock, 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
favoured area as defined in
Article 36(a)(i), (ii) and (iii) of Council Regulation (EC) No 1698/2005,

situated in a less

the enterprise is

— 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 invest-
ment 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.

3.9.2008

EN

Official Journal of the European Union

C 226/19

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
authority

the granting

Internet address

Further information

Budapest, 3 September 2007.

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

www.mfb.hu

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

Contact person:
Aladics Sándor
E-mail: aladics.sandor@mfb.hu

Dr. András MÁHR

State Secretary