MNB raises BGS allocation to HUF 1.15 tln
Image by Jessica Fejos
The Monetary Council of the National Bank of Hungary (MNB) decided on Tuesday that effective on Wednesday the central bank will raise it allocation for its Bond Funding for Growth Scheme (BGS) from HUF 750 billion to HUF 1.15 trillion, according to a report by state news wire MTI.
The council also decided to raise the central bank's exposure to individual issuers or issuer groups from HUF 50 bln to HUF 70 bln. The limit on the maturity of bonds issued in the scheme will also rise from 20 years to 30 years.
MNB seeks to further support improving the liquidity of the corporate bond market and to ensure that the sector continues to have access to sustainable, stable and long-term financing to finance their growth-enhancing investments.
MNB launched the BGS on July 1, 2019, since then 46 companies have issued 53 series of bonds, drawing in HUF 900 bln of funding.
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.