Corporate governance has a major effect on competitiveness as company managers can do much to improve the efficiency of resource management, said Gyula Pleschinger
, chairman of the Hungarian Economic Association and member of the national bank’s Monetary Council at a conference titled Advanced Corporate Governance 2017.
At the event organised by the University of Óbuda and the Hungarian Economic Association, Mr. Pleschinger explained that the National Bank of Hungary had recently bought the Budapest Stock Exchange from its Austrian owner with the express purpose of giving a new lease of life to a dying capital market. Taking over the stock market and organising events for professionals also allows company managers to learn about the best practices.
As much as EUR 25 billion (HUF 7000 billion) is available to Hungary in the current EU budgeting cycle, and 35% of that amount has already been channelled into the economy, Ágnes Hornung, financial state secretary of the Ministry of National Economy noted. The government’s support policy favours small and medium-sized businesses, as well as sectors generating high added value.
The state secretary also spoke about the Competitiveness Council set up this past spring. The body has already identified numerous solutions that could make a considerable effect on companies but require little energy to implement. For example, the time required to connect start-up companies to public utilities could be shortened; according to competitiveness reports, this is a problem to many new businesses.
Thanks to government measures taken since 2010, economic growth in Hungary is stable and sustainable, said Ms. Hornung. The steadily low deficit of public finances and the decline in public debt have contributed to macro-economic stabilisation.
According to Richárd Végh, chairman and CEO of the Budapest Stock Exchange, yields have been low for quite a while, so investors are forced to embrace riskier instruments such as shares and bonds.
As the Funding for Growth scheme is discontinued and the EU’s financial cycle ends in 2020, funding from stock markets will gain importance besides bank loans and subsidies, the chairman and CEO noted. The Budapest Stock Exchange offers targeted programs and mentorship to support small and medium-sized companies in their efforts at entering the stock market.
As to the contribution of the stock exchange to boosting the real economy, Mr. Végh referred to the alternative funding option that the stock market presents. In addition, a regulated market promotes transparent and efficient operations, and it also increases a company’s liquidity. (News agency MTI)
Click here to view photos of the conference.
Hungarian stock market leads in terms of responsible corporate governance recommendations, too (A magyar tőzsde a felelős vállalatirányítási ajánlásokban is élen jár – Portfolió.hu)
Corporate governance as a decisive factor in competitiveness (A vállalatirányítás meghatározó tényező a versenyképességben – Üzletrész.hu)
Bulk of EU funds to go to small companies in the current cycle (Az uniós források jó része a kis cégekhez kerül ebben a ciklusban – Magyar Idők)
Corporate governance as a key issue in competitiveness (A vállalatirányítás kulcskérdés a versenyképesség szempontjából – Gazdaságportál)