Banks disburse HUF 800.4 bln in loans in phase II of FGS

MNB

Net of repayments, banks disbursed HUF 800.4 billion in loans as of November 27 to small- and medium-size enterprises (SMEs) in the second phase of the National Bank of Hungaryʼs (MNB) Funding for Growth Scheme (FGS), fresh data released by the central bank show.

Contracts signed under phase II with 24,249 businesses amounted to HUF 1.183 trillion at the end of November.

Including the first phase of the scheme, in June-September 2013, financing under the FGS reached approximately HUF 1.9 tln, the central bank said. The credit went to about 28,000 businesses.

Under the FGS, The MNB provides zero-interest refinancing to banks, which they can lend to SMEs at an APR not exceeding 2.5%.

The central bank launched phase II of the scheme in October 2013 for an initial volume of HUF 500 bln, which it raised to HUF 1 tln in September 2014.

In September, unused funds from the HUF 500 bln Funding for Growth Scheme+ (FGS+) program were reallocated to the original FGS scheme.

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