The Treasurer’s Guide to Trade Finance

Hungary

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 139 bn Goods Exports 99

GDP per capita (USD) 13,911 Imports 95

GDP volume growth (year-on-year) + 1.4% Net + 4

Population 9.97m Services Exports 22

Discount interest rate (end period) 7.00% Imports 17

Exchange rate HUF / USD (year average) 201.06 Net + 5

BoP (goods, services & income) as % of GDP + 0.5% Source: IFS, IMF, January 2013

International/Regional memberships

European Union (EU): since 1 January 2004.
Hungary is also a member of the European
Economic Area (EEA).

International Monetary Fund (IMF):
since 6 May 1982.

World Trade Organization (WTO):
since 1 January 1995.

Government trade policy

ƒ Hungary implements the EU’s trade
regulations, commercial policies and
customs code (ec.europa.eu/trade).

ƒ Hungary trades freely with its fellow EEA
member states as well as Switzerland.

ƒ The EU has in place bilateral trade

agreements with 36 countries and regional

trade agreements with a number of trading

blocs.

ƒ National export credit insurance provider:

Hungarian Export Credit Insurance Company

(MEHIB — http://www.mehib.hu).

ƒ The state-owned Hungarian Export-Import

Bank (Eximbank — http://www.eximbank.hu)

provides state-supported export finance, albeit

only for exports that are Hungarian-made.

ƒ The EU maintains 74 free trade zones,

though none is located in Hungary.

Currency and exchange controls

Official currency: Hungarian forint (HUF).

Exchange rate arrangement: free floating.

Hungary does not impose foreign exchange
controls.

ƒ Hungary applies controls to financial credits
in the form of mortgages from resident
companies to non-residents if the collateral
is located overseas and the mortgage is to
represent part of an insurance company’s
security capital.

ƒ Controls are also applied to resident
purchases of securities from countries
outside the EEA and OECD (Organisation
for Economic Co-operation and
Development) if the assets are to represent
part of an insurance company’s technical
provisions cover.

Bank accounts

Permission to hold currency accounts

Within

Hungary

Outside

Hungary

HUFForeign currency HUFForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A