Report: Banks disburse HUF 864.4 bln in loans in phase II of Funding for Growth Scheme

MNB

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Net of repayments, banks disbursed HUF 864.4 billion in loans by December 31 to small and medium-size enterprises (SMEs) in the second phase of the National Bank of Hungaryʼs (MNB) Funding for Growth Scheme (FGS), fresh data released by the central bank show.

Contracts signed under phase II with 26,745 businesses totaled HUF 1.4 trillion by the end of December.

Including the first phase of the scheme, from June-September 2013, financing under the FGS came to approximately HUF 2.126 tln, the central bank said. Credit went to about 31,000 businesses.

Under the FGS, the MNB provides zero-interest refinancing to banks which they can lend to SMEs at an APR not exceeding 2.5%.

The central bank launched phase II of the scheme in October 2013 for an initial volume of HUF 500 bln which it raised to HUF 1 tln in September 2014.

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