Businesses tap over HUF 200 bln of phase III FGS credit

MNB

So far this year, some 6,000 Hungarian microbusinesses and SMEs have tapped into some HUF 202.3 bln 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 yesterday, according to Hungarian news agency MTI.

About HUF 146.5 bln of the financing, available from the start of this year, was in forints, while HUF 55.8 bln was denominated in foreign currencies. 

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

Net credit outlays, calculated after repayments and not including unfinished disbursements, stood at HUF 141 bln at the start of September.

Since the FGSʼs launch three years ago, more than 34,230 businesses have availed themselves of HUF 2,329 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 can lend to SMEs at an APR not exceeding 2.5%. 

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