ANNUAL REPORT 2011 - Magyar Fejlesztési Bank Zrt.

❙ 1. MFB Hungarian Development Bank Private Limited Company
LEGAL STATUS
MFB Magyar Fejlesztési Bank Zártkörûen Mûködô Részvénytársaság
(short name: MFB Zrt. or the Bank) is a specialised credit
institution and a single-member private limited company.
The legal status, responsibilities and scope of business
of the Bank are governed by Act XX of 2001 on the Hungarian
Development Bank (the MFB Act), as amended, the provisions
of its Charter and the strategy approved by the Government and
the shareholder.
STATUTORY AND LEGAL BACKGROUND
Section 47 of Act CLXIX of 2010 on the Budget of the Republic
of Hungary for 2011 provided that the consolidated portfolio
of credits and loans taken out and bonds issued by MFB for
funding purposes in 2011, each maturing over a year, could not
surpass HUF 1,400,000.0 million; also the relevant Government
Decision provided that the total portfolio of liabilities arising from
credit financing, first payment guarantees and bank guarantees
accepted by MFB in favour of third parties in 2011 could not
surpass HUF 600,000.0 million and the HUF equivalent of the
consolidated portfolio of funds covered by exchange rate
hedging agreements the Government may enter into in respect of
EUR denominated credits and loans taken out and bonds issued
by MFB for funding purposes, each maturing over a year, could
not surpass HUF 1,600,000.0 million in 2011, provided that the
actual value of portfolios could not surpass the aforesaid limits on
any calendar day. During the year the Bank complied with all the
budgetary limits.
MFB Zrt., as an entity acting as a shareholder on behalf
of the State of Hungary had to apply Act CXCVI of 2011 as
soon as it was published. Section 30(1) of the Act clarified the
stipulations of Section 3(5) of Act XX of 2001 on the Hungarian
Development Bank. MFB Zrt. acts as shareholder on behalf of
the State of Hungary in respect of the state-owned participation
in the economic organisation specified in Annex 1 to the MFB
Act. Unless otherwise provided in the Act on National Assets
and the MFB Act, the provisions of the Company Act and the
Civil Code govern the exercise of shareholder’s rights, provided
that MFB Zrt. may neither sell its title to nor grant a call option
or the right first refusal in respect of the participations subject
to exercising such shareholder’s rights. Furthermore, MFB may
neither offer such participations as collateral, encumber them
in any other way nor wind up those economic organisations by
voluntary dissolution.
Annex 2 to the Act on National Assets identifies the 100%
stake of the State of Hungary in MFB Zrt. as a national asset of
high priority and certain participations in economic organisations
subject to the exercise of shareholder rights by MFB Zrt.
FOREIGN CORRESPONDENT
BANKS OF MFB
❙ Bank Polska Kasa
Warsaw, Poland
Opieki SA-Bank Pekao SA
❙ Commerzbank AG
Frankfurt, Germany
❙ JP Morgan AG
Frankfurt, Germany
❙ JP Morgan Chase Bank New York, USA
❙ Mizuho Corporate Bank Ltd. Tokio, Japan
❙ The Royal Bank of Scotland Plc. London,
United Kingdom
❙ The Royal Bank of Scotland New York, USA
❙ Zürcher Kantonalbank Zürich, Switzerland
28 MFB ANNUAL REPORT 2011