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The Role of Financial Instruments in Improving Access to Finance

Combined Microcredit in Hungary


Györgyi Nyikos

Access to financing is certainly one of the most important components for the creation, survival, performance and growth of SMEs. The combined microcredit is a unique financial development tool where micro-credit and non-repayable assistance can be requested within one construction (other type of combined microcredit is delivering both micro-insurance and micro-credit products). The paper analyses the Hungarian practice using this financial instrument, both looking at the empirical evidences and seeking for answer to the question, whether this form of support is effective, useful or not. Operating under conditions of economic uncertainty, fiscal deficit and consequent budgetary pressures, and encouraged by the early performance and leverage effects of financial instruments, policymakers see considerable value in supporting the further development of FIs and for their use in both existing and new policy-related areas of activity.

Based on a presentation made on the 2nd joint EU Cohesion Policy Conference Challenges for the New Cohesion Policy 2014-2020 4th- 6th February 2015 Riga, Latvia.
Associate professor, cohesion policy expert, Hungary, National University of Public Service/Permanent Representation of Hungary.


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