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FGS Go! credit supports investments, working capital

Credit lenders have disbursed in the framework of the Funding for Growth Scheme (FGS) Go! of the National Bank of Hungary (MNB) has supported investments and met a need for working capital, banks told MTI.

 Under FGS Go!, an extension of the Funding for Growth Scheme launched in April as part of pandemic stimulus, MNB is providing lenders with HUF 1.5 tln of 0pc financing for microbusiness and SME loans with fixed rates capped at 2.5%. FGS Go! credit is being made available to a broader range of businesses than in the earlier scheme and conditions have been eased.

OTP Bank, Hungaryʼs biggest commercial lender, said it has signed or is drawing up contracts for close to HUF 200 bln in FGS Go! credit - 26% of the total, so far - for 1,400 clients. The credit has been evenly distributed among investment loans and working capital loans. Demand has been strongest among commercial and vehicle repair businesses, followed by real estate companies and manufacturers.

K&H Bank has signed FGS Go! contracts worth almost HUF 130 billion and disbursed over HUF 90 bln of that amount. Demand has been highest among crop and animal farmers, as well as commercial businesses. Working capital loans account for nearly 70% of the total. New investment loans make up 14% and refinancing for existing investment loans another 14%.

Takarékbank has signed HUF 73 bln of FGS Go! contracts and disbursed HUF 69 bln. Three-quarters of the credit is for new investments, while 17% has gone to pre-finance subsidized projects.

MKB Bankʼs FGS Go! outlays stand at HUF 50 bln and HUF 30 bln of that amount has been disbursed. Demand is strongest for investment and working capital loans.

Erste Bank has signed contracts for almost HUF 80 bln of FGS Go! credit and disbursed over 80% of that amount. More than half of the credit is for working capital, 30% is for refinancing and 15% is for new investments.

UniCredit Bankʼs FGS Go! contract stock has reached HUF 59 bln, and its outlays of the credit stand around HUF 44 bln. About 60% of the credit is for new or refinanced working capital loans and 20% is for refinancing investment loans.

CIB Group has FGS Go! contracts of HUF 42 bln and has disbursed HUF 26 bln. Working capital loans are in highest demand among its clients.

Raiffeisen Bankʼs stock of FGS Go! contracts has reached HUF 27 bln, and it has disbursed HUF 14 bln of that credit. New investment loans account for 70% of contracts.

Some HUF 700 bln in FGS Go! credit has been disbursed so far.