MNB allots HUF 228 bln of lending-linked swaps at tender
Image by Jessica Fejos
The National Bank of Hungary (MNB) accepted bids for interest rate swaps conditional on lending activity (LIRS) worth a total of HUF 228 billion at a tender on Thursday, state news wire MTI reported.
Banks must raise their SME lending stock, excluding non-performing loans, by at least one-quarter of the allotted LIRS annually.
The MNB said the latest allocation would raise participating banksʼ commitment to boost SME lending by 34% to HUF 227 bln. The outstanding LIRS stock comes to HUF 906 bln.
Nine banks took part at the tender on Thursday. The tender ensures SME lending growth will be in the top half of the 5-10% range necessary for sustainable economic growth, the central bank said.
The MNB will offer banks participating in the LIRS scheme a preferential deposit facility from August, capped at HUF 150 bln.
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