MFB to offer preferential loans to former state workers from November

MNB

The Hungarian Development Bank (MFB) Zrt will start offering preferential loans to public sector workers laid off as a result of government austerity measures from November 6, deputy CEO Sándor Aladics said in Tuesday's issue of business daily Világgazdaság.

The loans are intended to help the laid-off workers set up their own businesses. The government is scheduled to discuss the planned credit construction this week, Aladics said. The government promised in September to make Ft 20 billion in preferential credit available to public sector employees or workers at state-owned companies who have lost their jobs. The loans were to be available for up to Ft 3 million until the end of 2008. Aladics said the loans will not require any self-financing by the borrower, and will carry a 100% state guarantee. According to plans, the loans' run will be for 10 years with a three-year grace period. They will carry a rate of at most 2.5% over the three-month Euribor, or about 6% at present.
The loans will be available at a number of commercial banks with which MFB has contracts. MFB expects the laid-off workers to take out Ft 2 million-Ft 2.5 million apiece, enough to cover the start-up costs of a small business, meaning the scheme will assist as many as 8,000-10,000 former state employees.

ADVERTISEMENT

Almost half of Hungarians get fringe benefits, survey shows Analysis

Almost half of Hungarians get fringe benefits, survey shows

19,000 young jobseekers hired in expanded subsidy program Government

19,000 young jobseekers hired in expanded subsidy program

Manager screenings - not just for managers Interview

Manager screenings - not just for managers

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.