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MNB amends ʼFGS Go!ʼ scheme to help SME borrowing

The National Bank of Hungary (MNB) has decided to amend the conditions of its new ʼFunding for Growth Scheme Go!ʼ (FGS Go!) program to make it easier for SMEs to borrow under the scheme, deputy governor Mihály Patai announced at an online press conference on Thursday, according to a report by state news wire MTI.

Photo by Adriana Iacob/Shutterstock.com

MNB launched the FGS Go! on April 20, making HUF 1.5 trillion available to micro-, small and medium-sized businesses through credit institutions and financial businesses at a fixed interest rate of a maximum 2.5%, available on a wider scale than before, helping SMEs to overcome the economic effects of the coronavirus.

One of the modifications will allow businesses to use the credit borrowed under the scheme for investments not only in Hungary but abroad as well.

Also, condominiums and housing cooperatives will in future be able to use the FGS Go! funding for investments into modernization or green projects.

They will ease the conditions to take out working capital loans under the scheme.

In a further novelty, the businesses will be able to use the FGS Go! loans to pre-finance not only European Union support they won but also domestic funding.

In order to accelerate the lending process, the MNB will make one-off checks to ensure whether banks abide by the two-week deadline they have to assess loan applications, Patai said.