Banks disburse HUF 484 bln of loans in phase II of Funding for Growth Scheme

Telco

Banks have so far disbursed HUF 484 bln of loans to SMEs using cheap credit available in the second phase of the National Bank of Hungary's (MNB) Funding for Growth Scheme, fresh data released by the central bank show. 

The data is for outlays between October 2013, when phase II was launched, and January 30. Contracts signed under phase II totalled HUF 601.2 bln. The credit went to 14,271 businesses. The central bank launched phase II of the scheme with an initial volume of HUF 500 bln. It raised the credit to HUF 1,000 bln about a year later.

When it launched the phase, the MNB said that it could raise the amount available to as much as HUF 2,000 bln. The MNB made HUF 750 bln of refinancing available to banks which lent a total of HUF 710 bln to SMEs in the first phase of the scheme in June-September 2013. Under the scheme, the MNB provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5%. 

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