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Microbusinesses receive FGS credit of HUF 860 bln

Hungarian microbusinesses were the recipients of HUF 860 billion in cheap credit under the Funding for Growth Scheme (FGS) of the National Bank of Hungary (MNB), the central bank said in a study of the impact of the program published Wednesday, Hungarian news agency MTI reported.

Microbusinesses used more than three-quarters of the FGS credit for investments.

About HUF 960 bln of FGS credit went to small businesses and almost HUF 1 trillion was used by mid-sized businesses. 

The FGS, which financed cheap credit for microbusinesses and SMEs, wound up at the end of March. Since the FGSʼs launch in June 2013, a total of some 39,253 businesses tapped HUF 2.811 tln of the credit, contributing to a two percentage-point increase in GDP growth in 2013-2016, said the central bank.

The MNB estimated the FGS added 20,000 jobs to the economy and contributed indirectly to higher wages and consumption as well as to greater tax revenues resulting from higher profits.