Financial Instruments – Hungarian Experiences and Lessons Learned

Abstract

Financial instruments invest public sources on a repayable basis with a revolving character, which allows for a much greater efficiency in the allocation of public capital and the long-term sustainability of public investment. European 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. The paper analyses the Hungarian practice using financial instruments both looking at the empirical evidences and seeking for answers to the question, whether the financial instruments are effective, useful or not. This paper has two main aims: first, to review the legislation and the approach of the Member States on the utilization of financial instruments; second, to analyse experiences, current and previous practical problems and solutions linked to FIs.