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MNB launches FGS Green Home program

MNB

MNB headquarters in Budapest

Photo by Andocs / Shutterstock.com

The National Bank of Hungary (MNB) on Tuesday announced the launch of the Funding for Growth Scheme (FGS) Green Home Program to support purchases of energy-efficient homes, according to a report by state news wire MTI.

In the framework of the FGS Green Home Program, the central bank will provide 0% refinancing to lenders for retail loans for new homes with a primary energy consumption threshold of 90 kWh/sqm per year. Interest rates on the loans will be capped at 2.5%.

The program was launched on Monday with a HUF 200 billion allocation.

Fielding questions at a press conference, MNB deputy governor Mihály Patai said the scale of the appetite for the scheme, which is "a novelty", "can't be estimated", but added that there is a "very good chance" that MNB policymakers will continue the program if the initial allocation is used up.

The preferential credit is limited to borrowers who plan to reside in the homes they purchase, excluding property investors.

The maturity of the loans is capped at 25 years.

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