FGS Go! disbursements near HUF 1.5 tln

MNB

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Under the National Bank of Hungary's (MNB) Funding for Growth Scheme Go! program launched in April 2020, financial institutions have disbursed some HUF 1.5 trillion of credit to SMEs by the end of December, central bank deputy governor Mihály Patai said at an award ceremony on Tuesday.

Patai said around HUF 500 billion of credit was used for investments and noted that interest in the program was so strong that the Monetary Council added on November 17 another HUF 1 tln to the original HUF 1.5 tln allocation for the scheme after its utilization exceeded HUF 1 tln.

He said MNB would keep supporting investments through the program in 2021.

At the ceremony on Tuesday, Magyar Bankholding, the second-largest banking group in Hungary, was presented the Funding for Growth Scheme Go! Excellence Award in recognition for the group's efforts in helping with boosting lending.

Magyar Bankholding's chairman Zsolt Barna said that during eight months members of the group have signed 6,500 contracts with clients for HUF 437 bln of credit disbursements and actual outlays have already reached HUF 335 bln.

In a separate statement, MNB said banks disbursed HUF 1.473 tln of credit as part of FGS Go! to more than 21,000 micro, small and medium-sized companies by the end of 2020. Around 31% of the outlays were for new investment projects, 56% were working capital loans and 13% were used to refinance earlier investment loans.

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