ADVERTISEMENT

Microbusinesses receive FGS credit of HUF 860 bln

MNB

shutterstock

Hungarian microbusinesses were the recipients of HUF 860 billion in cheap credit under the Funding for Growth Scheme (FGS) of the National Bank of Hungary (MNB), the central bank said in a study of the impact of the program published Wednesday, Hungarian news agency MTI reported.

Microbusinesses used more than three-quarters of the FGS credit for investments.

About HUF 960 bln of FGS credit went to small businesses and almost HUF 1 trillion was used by mid-sized businesses. 

The FGS, which financed cheap credit for microbusinesses and SMEs, wound up at the end of March. Since the FGSʼs launch in June 2013, a total of some 39,253 businesses tapped HUF 2.811 tln of the credit, contributing to a two percentage-point increase in GDP growth in 2013-2016, said the central bank.

The MNB estimated the FGS added 20,000 jobs to the economy and contributed indirectly to higher wages and consumption as well as to greater tax revenues resulting from higher profits.

ADVERTISEMENT

PMI edges down to 52.2 in November Analysis

PMI edges down to 52.2 in November

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.