Govʼt launches HUF 137 bln credit program for small businesses

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Finance Minister Mihály Varga on Tuesday announced the launch of a HUF 137 billion, 0%-interest credit program for small businesses, according to a report by state news wire MTI.

The credit available at MFB Points affiliated with the Hungarian Development Bank (MFB) will provide the cheapest financing available for operation during the crisis and for preparations for the competition after the recovery, Varga said.

The government wants to help all viable businesses get through the crisis and participate in the economic recovery, he added.

Half of the credit in the program will be made available for investments and half for working capital. Investment loans are capped at HUF 150 million per company and working capital loans at HUF 300 mln.

The credit is available to companies across the country with the exception of the Central Hungary region, where GDP per capita exceeds the European Union average.

The credit is part of some HUF 420 bln in European Union grant money and credit that was earlier rechannelled to support government measures to shield against the economic fallout from the pandemic.

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