Financial Institutions Matter for Territorial Development Challenges to Achieve Growth and Positive Impact on Local Economies in Hungary (2007–2013)

Abstract

Based on the facts that financial intermediary system has crucial impacts on national economic growth, territorial cohesion and local economic development as well, financial instruments and their intermediary institutions could play a greater role in territorial development. This paper aims to give a brief overview about the financial instruments’ role in development policy in the EU and in Hungary, to highlight the special features of the Hungarian delivery system (2007–2013), and to identify the risks and challenges on local economic development in the current development period (2014– 2020). The background research was based on the analyses of the Hungarian strategic development policy documents (Partnership Agreement, operational programmes) and the activity data of the institutional system, which managed the repayable funds between 2007–2013.