The Hungarian government gives 2,6 billion Ft  as not reimbursable subsidy for modernization of old brick-flats. This modernization includes energy saving projects (investments) and transferring (or partly transferring) to renewable energy resources.
In comparison with last year's subsidy there are some relevant changes.

First, the amount of current support is twice as much as it was in last year. While the portion of state subsidy was 30% in 2006, and the rest was financed in 30% from municipal sources and another 30% from own risk, this year the subsidy covers only the 15% of the whole cost of  modernization, the remaining 85% can be covered by a relatively low-cost loan ( 6,4%) granted by MFB (Magyar Fejlesztési Bank).

Who can apply:

• Private persons
• Block of flats
• Building societies
• Foreigners - if they are citizens of European Economic Area living in Hungary at least for one year and they own the flat

Two types of applications

Application „A"

Here you can apply for not reimbursable subsidy for energy saving investments in flats being built before 1994. These can be external insulation, or replacement of doors and windows and  that of energy suppliers.

Application „B"

Subsidy is given also for owners living in new or panel flats. Money can be used for buying equipments running with renewable energy (wind, sun, organic waste, geothermal energy)

This year the upper limit in „A" and „B" version is uniformly 265.000Ft, but both subsidies can be applied for parallel (that means e.g. you invest in solar collectors and besides you want to insulate your house outside you can have 2x 265.000 Ft)

The bank grants 85% of the callable amount besides state subsidy, and in case the state runs out of support-money this part turns to loan, too.

If it's 85% bank-construction: for version „A" the total sum is 1,5 million Ft / flat
for version „B"  it is 3,735 million Ft / flat

If it's 100% bank loan:
for version „A" - 1,765 million Ft / flat
for version „B" - 4 million Ft / flat

Standby loan commitment: max. 2 years
Days of grace: max. 3 years
Expiry of loan: min. 5 years max. 20 years

Available funds of  MFB: 16.000.000 billion Ft but it can be raised

Detailed conditions will be published:  31. March 2007.
Applications can be submitted from: 1. April 2007.

According to Kóka János, Minister of  Economy and Transport, a successful investment could reduce the energy consumption of a flat with 30%.From now through 7 years 15-20 billion Ft state subsidy, and 100 billion Ft loan is available for these modernizations, that means 130.000-150.000 renewed flats in the end of the period.
In spite of  these experts say that this project would reduce energy consumption of Hungary only with 1 thousands a year.