MNB: Unused funds from FGS+ to be reallocated to FGS scheme

MNB

All unused funds from the Funding for Growth Scheme+ (FGS+) program to finance small and medium-size enterprises (SMEs) will be reallocated to the original FGS scheme, the National Bank of Hungary (MNB) said today.

FGS+ was launched with HUF 500 bln in March but feedback from banks now suggests they will not be able to disburse the whole amount to SMEs in time, MNB said.

In response to this, the Monetary Council decided on Tuesday to allow banks to use unspent FGS+ funds as part of the FGS program as demand for this type of funding is picking up due to economic growth, seasonal effects and the eventual phasing out of the program.

At the end of October the MNB will re-examine the issue and reallocate unused funds from banks to more active lenders to ensure maximum utilization.

SMEs will be able to sign contracts for lending from the FGS and the FGS+ schemes until the end of the year. In 2016 MNB will start to wrap the program and take measures to place SME lending back on a market basis.

MNB will provide further information on completion of the FGS programs in November.

Farmgate Prices Fall 25.4% in February Crops

Farmgate Prices Fall 25.4% in February

Hungary in Talks on Attracting More Chinese Investments - Sz... Int’l Relations

Hungary in Talks on Attracting More Chinese Investments - Sz...

Close to 2,500 Companies Apply for EV Subsidies Automotive

Close to 2,500 Companies Apply for EV Subsidies

Chresten Bruun Wins Expat CEO of the Year Award Awards

Chresten Bruun Wins Expat CEO of the Year Award

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.