L 239/26 Official Journal of the European Union 6.9.2008 COMMISSION DECISION of 16 April 2008 on the measure C 29/07 (ex N 310/06) which Hungary is planning to implement in the form of a short-term export-credit guarantee for SMEs with limited export turnover (notified under document number C(2008) 1332) (Only the Hungarian version is authentic) (Text with EEA relevance) (2008/718/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments, Whereas: 1. PROCEDURE (1) By electronic notification dated 17 May 2006, the Hungarian authorities notified the above-mentioned measure (hereinafter referred to as the measure) pursuant to Article 88(3) of the EC Treaty. The notifi- cation was supplemented by letter dated 21 June 2006, registered at the Commission on 22 June 2006. (2) By letters dated 1 August 2006, 30 October 2006 and 30 April 2007, the Commission requested additional information, which was provided by Hungary by letters dated 12 September 2006, 21 March 2007 and 30 May 2007, registered at the Commission on the same days. (3) By letter dated 18 July 2007 (hereinafter referred to as the decision initiating proceedings), the Commission informed Hungary that it had decided to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the measure. (4)  The Commission decision to initiate the procedure was published in the Official Journal of the European Union (2). The Commission invited interested parties to submit their comments on the aid. () O] C 234, 6.10.2007, p. 18. () Idem. (5 The Commission received no comments from interested third parties. The comments of the Hungarian authorities were received by letter dated 21 September 2007. 2. DESCRIPTION OF THE MEASURE 2.1. Objective (6)  The objective of the measure is to provide short-term export-credit guarantees to finance export transactions by SMEs (®) with an annual export turnover not exceeding EUR 2 million (hereinafter referred to as SMEs with limited export turnover). Hungary wishes to implement the measure under point 2.5 of the Commu- nication of the Commission to the Member States pursuant to Article 93(1) of the EC Treaty applying Articles 92 and 93 of the Treaty to short-term export- credit insurance (*) (hereinafter referred to as the ‘Communication on short-term export-credit insurance’ or ‘Communication’). 2.2. Terms and conditions of the guarantee (7)  The guarantee in relation to the repayment of a loan to finance export transactions can be given: (a) to an exporting domestic SME with limited export turnover in order to enhance its ability to take out a loan from a commercial bank. In such a case, the risks may be associated directly with the seller (ie. the exporting SME), and indirectly with the buyer; (b) to a foreign buyer purchasing goods and services from a domestic SME with limited export turnover, in order to enhance the ability of the buyer to take out a loan from a commercial bank. In such a case, the risks are associated directly with the buyer. There is no restriction as to the country of the buyer, ie. the buyer can be located either in one of the countries listed in the Annex to the Communication or in another country. Nor is there any restriction as regards the size of the foreign buyer (i.e. it can be a large enterprise). () As defined in the Hungarian Act XXXIV of 2004. This definition of SMEs is in line with the relevant criteria contained in the Commission Recommendation of 6 May 2003 concerning the defi- nition of micro, small and medium-sized enterprises (O] L 124, 20.5.2003, p. 36). () O] C 281, 17.9.1997.