FGS Go! winds up after HUF 3 tln allocation reached
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The National Bank of Hungary (MNB) officially closed the Funding for Growth Scheme (FGS) Go!, a central bank program that aimed to ensure SMEs cheap credit during the coronavirus crisis, on Tuesday, after the HUF 3 trillion allocation was exhausted, according to a report by state news wire MTI.
The credit went to around 40,655 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 provided lenders with 0% financing for microbusinesses and SME loans with fixed rates capped at 2.5%. The scheme was open to a broader range of businesses and conditions were eased.
MNB said 38% of FGS Go! contract volume went to new investments, while 53% was for working capital and 9% was for refinancing earlier investment loans. About three-fourths went to SMEs in commerce, manufacturing, property development, farming, and construction. More than one-fourth of the credit went to microbusinesses, and one-third was disbursed to small businesses.
About 75,000 businesses have drawn on HUF 6.4 tln of credit in the framework of the eight-year-old FGS. MNB estimates the program has contributed over 5 percentage points to GDP growth since its launch.
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