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FGS scheme extended until March 2017

MNB

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The Monetary Council (MC) of the National Bank of Hungary (MNB) has decided to extend the application deadline for SMEs in the third phase of the bankʼs Funding for Growth Scheme (FGS) until March 31, 2017, the central bank announced today, according to Hungarian news agency MTI.

Funds from the scheme can be drawn until June 29, 2018, as originally announced by the MNB. 

Under the FGS, the MNB provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5%.

Since the FGSʼs launch three years ago, more than 36,100 businesses have availed themselves of HUF 2.459 trillion of financing.

The Monetary Council decided that unused FX loans in the third phase can now be converted into forint loans as long as the financing rules for forint loans are still observed.

The MNB predicts that even after the FGS is wound up, SME lending could still grow by around 5-10% for two years.

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