A €2 billion ($2.3 billion) capital infusion into Hungary’s Magyar Fejlesztesi Bank was approved by the European Commission on Monday.
This comes as Hungary pledges to improve its overall governance problems in exchange for EU assistance.
According to a statement from the Commission,
“Hungary has committed to several measures, including the limitation of financial activities to relevant market failures and implementation measures to prevent crowding out of private sector operators, which will ensure that MFB will not undercut private financial institutions active in the Hungarian market.”
Hungary’s national recovery plan was approved by the European Union Council on Friday, which is a step toward granting Budapest access to almost €10 billion in EU funding that had been withheld due to corruption concerns.
