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Businesses use HUF 231.8 bln of phase III FGS credit

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So far this year, some 6,890 Hungarian micro-businesses and SMEs have tapped about HUF 231.8 billion in cheap credit available in the third and final phase of the Funding for Growth Scheme (FGS) of the National Bank of Hungary (MNB), the central bank said Tuesday, according to Hungarian news agency MTI.

About HUF 166.5 bln of the financing, available from the start of this year, was in forints, while HUF 65.3 bln was denominated in foreign currency. 

Around 68% of outlays were for investment loans and 32% for lease contracts. 

Net credit outlays, calculated after repayments and not including unfinished disbursements, were at HUF 168 bln at the start of October. 

Since the FGSʼs launch three years ago, more than 34,735 businesses have availed themselves of HUF 2,358 bln of financing. 

Financing caps in the final phase of the scheme are HUF 400 bln for forint loans and HUF 300 bln for FX ones. 

Under the FGS, 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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