EC clears EUR 1.55 bln Hungarian guarantee scheme for hard-hit companies


The European Commission approved a EUR 1.55 billion guarantee scheme to support companies negatively impacted by the coronavirus pandemic, according to a report by state news wire MTI.

Under the scheme, guarantor Garantiqa, in which the state is a stakeholder, will provide guarantees on loans up to HUF 5 bln per company, while the state-owned Hungarian Development Bank (MFB) will provide guarantees on loans between HUF 5 bln and HUF 10 bln per company.

The scheme aims to provide liquidity to those companies which are most severely affected by the economic impact of the coronavirus outbreak, helping them to continue their activities, start investments and maintain employment during and after the pandemic. The scheme will be open to microbusinesses, SMEs, and large companies.

The scheme was approved under the state aid Temporary Framework adopted by the EC to enable member states to use the full flexibility foreseen under state aid rules to support the economy in the context of the coronavirus outbreak.

The EC said the scheme is "necessary, appropriate and proportionate" to remedy a serious disturbance in Hungaryʼs economy.

In these challenging times, is committed to providing you with up-to-date and accurate information. We will post at least three coronavirus updates each day, including weekends and bank holidays, at 10 a.m., noon and 5 p.m., or as close to then as developing events allow. Breaking news and other stories will be added throughout the day Monday-through-Friday.


MKB Q1-Q3 Earnings Climb 16% Banking

MKB Q1-Q3 Earnings Climb 16%

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

European Shoppers Reveal Holiday Habits  Retail

European Shoppers Reveal Holiday Habits 

Hard Rock Hotel Opens 'Star Chalet' for Winter Season Hotels

Hard Rock Hotel Opens 'Star Chalet' for Winter Season


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.