A priority goal is to strengthen the competitiveness of Hungarian agriculture

By: STA Date: 2024. 05. 10. 09:30

The growing trust between the actors of the banking sector and agriculture, and the performance of agriculture, has resulted in farmers being considered one of the best customer groups for credit institutions – stated Minister of Agriculture István Nagy at the international conference organized on the occasion of the 35th anniversary of the founding of the Hungarian Bank Association.

(Photo: AM/Csaba Pelsőczy)

At the event, the minister drew attention to the fact that the relationship between the Ministry of Agriculture and the Bank Association is of particular importance in the field of agricultural and corporate financing. In the agricultural sector, the banking sector plays a decisive role in the financing of developments and production.

István Nagy reminded that Hungarian agriculture has undergone spectacular development since 2010

As an example, he mentioned that in this almost decade and a half, the output increased by a third even at constant prices, and the income at the sector level increased by more than two and a half times. In addition, the foreign market also offered expanding sales opportunities, its value increased by 2.3 times, while our foreign trade balance also exceeded 65 percent last year compared to 2010. Investments are also indispensable for technological modernization, the volume of which increased by 56 percent between 2010 and 2023, the head of the ministry listed.

Today in Hungary, 14.6 percent of the total economic credit portfolio is related to agriculture and the food industry

And in agriculture, the role of all financing instruments has increased in value in the far from easy past period. At the end of 2023, the credit stock of agriculture exceeded HUF 1,040 billion, which means that it increased by two-thirds in five years. The HUF 610 billion stock of investment loans is outstanding, which is twice as much as five years ago, he added. The traditionally close cooperation and dialogue between the Ministry of Agriculture and the Hungarian Bank Association will be even more important in the future. To this end, a cooperation agreement was signed by Minister of Agriculture István Nagy and Levente Kovács, Secretary General of the Hungarian Bank Association.