MNB: First phase of FGS generates additional investment of HUF 120 bln

MNB

Not sharp!

The first phase of the National Bank of Hungary’s (MNB) Funding for Growth Scheme (FGS) generated an additional investment of HUF 120 bln by SMEs, according to a report by the central bank yesterday.

The MNB estimates that the FGS increased the average investment rate of SMEs that participated in the program by 7 percentage points.

Among enterprises employing fewer than 10 workers, the investment rate grew by 17 percentage points. Companies with 10-49 workers registered an increase of 6 percentage points. Companies larger than this had an increase of less than 5 percentage points.

SMEs applying specifically for investment loans had a 17 percentage point increase in their investment rate on average.

Under the FGS, The MNB provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5%.

During the first phase of the FGS between June-September 2013 contracts signed under the program came to almost HUF 1,400 bln, the central bank said earlier.

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