Money provided but not markets
National Bank of Hungary (MNB) and the Hungarian Export-Import Bank Plc. (Eximbank) provides abudant credit sources for corporations, although growth is not guaranteed as markets are unsure for companies.
“Credit sources have never been so copious for companies before as this year” Péter Hodina, Chief of Customer Relations Directorate of K&H Bank, said. In his view, loan usage would be determined by how companies extend their activities to boost internal and external markets. Hodina is concerned about the crucial effect of loans, as 5% increase in corporate loans would result in 2% GDP growth.
K&H press release states that interest drop has affected corporate credit market, however the effect is insignificant. First stage of funding for growth scheme has broken the deadlock of credit market and led to boost.
Available amount corporate loans has reached HUF 6700 billion extended with 2000 billion by the growth scheme. Hodina says that given these measures, the available money for development and growth cannot be an obstacle for the companies but capacity. According to the CR Chief, the companies who possess idle capacity would not apply for a loan as they have no reason for expansion and development.
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