ADVERTISEMENT

Central bankʼs funding scheme said to lift GDP

MNB

The National Bank of Hungaryʼs (MNB) Funding for Growth Scheme (FGS) has added more than 1% to Hungaryʼs GDP since it was launched in the summer of 2013, the central bank said in a review of the program which makes cheap credit available to SMEs.

The FGS, together with the parallel construction FGS+, brought to a halt the 5-7% annual fall in SME lending stock, the MNB said, though conceding that a "lasting lending turnaround has not happened yet". It noted that the FGS is winding up at the end of this year and that the domestic banking sector would have to meet the challenge of bringing lending activity to appropriate levels in future.

The MNB estimates that corporate lending stock must rise an annual 6-9% to support lasting economic growth.

Some HUF 1,500 bln in financing from the FGS has gone to about 23,500 businesses since its launch.

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.