State Audit: Development Bank lawfully managed Hungarian loan, but Finance ministry delayed payments

The State Audit Office found that the Development Bank lawfully administered the €250 million loan line earmarked for domestic companies, but the Ministry of Finance delayed transfers of some tranches to the bank.

Audit flags late transfers that may slow investments

According to the audit, delays began in May last year and in some cases the Ministry took as long as 48 working days to transfer funds that were contractually due within 10 working days. Auditors warned that untimely payments to end beneficiaries could affect the pace of planned investments financed from this credit line.

"Given that untimely payment of funds to end users can affect the dynamics of executing planned investments financed by this credit line, it is necessary for the Ministry of Finance to take actions to ensure timely disbursement of the tranches," the State Audit Office said.

The audit covers the period from January 2025 through April 2026. So far 767 projects have been approved under the scheme, the majority aimed at small enterprises, while the largest amounts were granted to medium and large companies. Most of the funds have gone to manufacturing, with the remainder directed to trade, transport and construction. Beneficiaries receive loans at a preferential fixed interest rate of 1.95% per year.

Of the total Hungarian credit of €500 million, €250 million are reserved for domestic companies and the other €250 million for municipal capital projects. The loan agreement was signed in July 2024, shortly after the formation of Hristijan Mickoski's government, following a meeting with then–Hungarian prime minister Viktor Orbán. The opposition at the time criticised the agreement for insufficient transparency and possible political motives behind the borrowing.

Photo: press material from the event