Rate Freeze on SME Credit Ending April 1

Banking

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A rate freeze on SME credit will end on April 1, as lending rates are expected to fall under the 7.77% threshold set in November 2022, the Ministry of National Economy said in a release on its website.

The ministry said the rate freeze had saved over 50,000 SMEs, with close to HUF 1.5 trillion in loans of around HUF 150 billion. It added that the benchmark three-month Budapest Interbank Offered Rate (Bubor) had stood over 16.5% when the measure was rolled out.

The ministry noted that lenders had voluntarily agreed to temporarily reduce their spreads on corporate credit over the Bubor to 0% from Feb. 1 for three months.

The three-month Bubor stood at 8.07% on Wednesday.

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