ADVERTISEMENT

FGS Go! outlays reach HUF 2.91 tln

MNB

Photo by Adriana Iacob/Shutterstock.com

Outlays of the Funding for Growth Scheme (FGS) Go!, a central bank program that aims to ensure SMEs cheap credit during the coronavirus crisis, have reached HUF 2.91 trillion, 97% of the HUF 3 tln allocation, the National Bank of Hungary (MNB) said on Friday.

The credit went to around 40,000 businesses, MNB said.

The central bank launched FGS Go! - an extension of its Funding for Growth Scheme started in 2013 - in April 2020 to mitigate the economic fallout from the coronavirus crisis. Under the scheme, MNB is providing lenders with 0pc financing for microbusinesses and SME loans with fixed rates capped at 2.5%. The scheme is open to a broader range of businesses and conditions have been eased.

The bank said 37% of FGS Go! contract volume went to new investments, while 53% was for working capital and 10% was for refinancing earlier investment loans. About three-fourths went to SMEs in commerce, manufacturing, property development, farming, and construction. Close to one-third of the credit went to microbusinesses, and one-third was disbursed to small businesses.

MNB's Monetary Council announced the closure of FGS Go! with the exhaustion of its HUF 3 tln allocation after a monthly policy meeting in June. The rate-setters said the pick-up in the economic recovery had made it possible for MNB "to phase out certain crisis management tools".

More than 74,000 businesses have drawn on HUF 6.3 tln of credit in the framework of the eight-year-old FGS. The central bank estimates the program has contributed about 4.5 percentage points to GDP growth in recent years.

ÁKK Sells HUF 82.5 bln of Bonds at Auction, Above Plan Debt

ÁKK Sells HUF 82.5 bln of Bonds at Auction, Above Plan

EC Puts Hungary 2024 GDP Growth at 2.4% EU

EC Puts Hungary 2024 GDP Growth at 2.4%

HU-rizon Program: HUF 8 bln Funding for International Resear... Science

HU-rizon Program: HUF 8 bln Funding for International Resear...

Inspiring Women at the Focus of Gourmet Fest In Budapest

Inspiring Women at the Focus of Gourmet Fest

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.