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State support may bring modern tractor fleets

The introduction of a new state support measure may result in increased activity on the agricultural machinery market, as well as a more lively leasing market and more modern machine fleets at market players, says a press release from the Hungarian Leasing Association.

A new directive from the Ministry of Agriculture allows buyers of new agricultural machinery, such as tractors, to get state subsidies for 50% of the interest on the loan used for the purchase.

"It is beneficial that the support is also available in the National Bank of Hungaryʼs NHP Fix program," says Zoltán Tóth, secretary general of the Hungarian Leasing Association. "It is an important requirement that the interest subsidies can only be applied for in case the leasing agreement was made prior to the end of the year."

The association says that the state subsidy offers greater leeway for companies to get new machines and tractors. According to Tóth, the state support means that leasing firms can expect agrarian companies to utilize leasing deals to finance machines that will make them more efficient and competitive than before.

The press release notes that financing agricultural machinery is already one of the most stable segments on the Hungarian leasing market. In 2018, the member companies of the association leveraged HUF 82 billion for the acquisition of agricultural machinery, representing a 14% year-on-year increase.