Funding for Growth Scheme ends after disbursing HUF 2.811 tln

MNB

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Some 13,934 Hungarian microbusinesses and SMEs have tapped about HUF 685 billion in cheap credit available in the third and final phase of the National Bank of Hungaryʼs Funding for Growth Scheme (FGS), which wound up in March, the central bank said on Wednesday, according to state wire service MTI.

About HUF 474.3 bln of the financing was in forints and HUF 210.6 bln was denominated in foreign currency. 

Financing caps in the final phase of the scheme were initially set at HUF 400 bln for forint loans and HUF 300 bln for FX loans.

Around 78% of outlays were for investment loans and 22% for lease contracts.

Net credit outlays, calculated after repayments and not including unfinished disbursements, stood at HUF 442 bln at the end of March.

Since the FGSʼs launch in June 2013, some 39,253 businesses have taken up a total of HUF 2.811 trillion of financing through 78,000 loan and lease contracts. 

The first phase of the FGS concluded in three months, the second was launched in the fall of 2013, and the third at the start of 2016.

Under the scheme, the National Bank of Hungary (MNB) provided zero-interest refinancing to banks, which they could then lend to SMEs at an APR not exceeding 2.5%. 

The central bank estimates that the FGS contributed 2 percentage points to economic growth between 2013 and 2016, and raised employment by around 20,000 jobs.

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