MNB announces detailed conditions of refinancing scheme


The National Bank of Hungary (MNB) will notify banks on the volume of refinancing they will be allocated from the lending and loan conversion facilities of the MNB's "Funding for Growth Scheme" on May 28, detailed conditions of the two facilities and contracts between banks and the MNB published by the bank on its website Tuesday afternoon reveal. Most of the conditions had already been announced. 
    Banks will be able to draw on the refinancing allocated and will have to provide the loans to the SMEs between June 3 and August 30, with the exception of new development loans (which do not refinance existing loans), where 70% of the MNB refinancing could be called after the deadline, but no later than February 28, 2014. 
    The contracts with the SMEs should be signed and related data submitted to the MNB in every case, however, by August 28. Banks will have to pay a one-off, non-annualised 2% commitment fee to the MNB on the part of the refinancing allocated, but not covered by SME loan contracts by the end of August. The commitment fee will be 1% for unused MNB refinancing provided for the conversion of SME's FX loans into forint loans. 
    Banks will have the choice to use standard collaterals or the SME loans they provide under the scheme as collateral to the refinancing, but they must make the choice in advance. If they decide to use SME loans as collateral, they must submit the MNB the related SME loan contract. The MNB will calculate the SME loans at between 50% and 67% of nominal value as collateral, depending on the guarantee the loans carry. 
    The loans cannot be used to repay loans restructured after March 31 (the scheme was announced early April) or non-performing loans. The lender must not disburse the loan to the SME earlier than the date of its use, except if it is for the purchase of inventories. Banks will have to check whether the SME uses the loan in line with its agreed aim and to immediately renounce the loan if used incorrectly, and pay the related refinancing back at a punitive rate of double the central bank base rate to the MNB. 
    The SME must pay the same punitive interest rate to the lender. The refinancing must be immediately paid back to the MNB if the bank restructures, renews the loan or if the loan becomes non-performing.

Zwack Profit Falls 16% Figures

Zwack Profit Falls 16%

EC Advances Infringement Procedure Over Hungary's Sovereignt... EU

EC Advances Infringement Procedure Over Hungary's Sovereignt...

Hell Energy Inaugurates HUF 80 bln Capacity Expansion Manufacturing

Hell Energy Inaugurates HUF 80 bln Capacity Expansion

Puskás Arena to Host 2026 Champions League Final In Budapest

Puskás Arena to Host 2026 Champions League Final


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.