MNB reallocates HUF 60 bln of FGS financing, extends deadlines

MNB

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Policy-makers at the National Bank of Hungary (MNB) have decided to reallocate HUF 60 billion in cheap financing left over from the final phase of the Funding for Growth Scheme (FGS), while also extending the deadline for drawing credit under the program by six months, the central bank said today.

The HUF 60 bln from the part of the program targeted at companies with foreign currency revenues will be reallocated in equal parts to the programʼs FX and forint pillars.

The MNB launched the third and final phase of the FGS in January. It allocated HUF 400 bln of forint credit and HUF 300 bln of FX credit to lenders at 0% interest. The financing was intended to support corporate loans with APRs of no more than 2.5%.

The MNB also extended deadlines for drawing credit under the FGS II/FGS+ phase and the FGS III phase to June 30, 2016 and June 29, 2018, respectively.

Since the FGS was launched in the summer of 2013, some 34,700 businesses have gained access to a total of nearly HUF 2,360 bln in cheap loans, the MNB noted.

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