Businesses Apply for HUF 1.231 tln of Baross Gábor Credit


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Hungarian businesses have submitted 2,174 applications for HUF 1.231 trillion of subsidized credit in the framework of the Baross Gábor Reindustrialization Program, Economic Development Ministry state secretary Máté Lóga said in a statement issued on Tuesday, according to a report by state news wire MTI.

The scheme, launched on February 1, offers businesses credit capped at 6% for forint loans and 3.5% for euro loans. The program allocation was earlier raised from HUF 700 bln to HUF 1 tln on strong demand.

Lóga said applications for HUF 839 bln of credit have been approved, so far, while contracts have been signed for HUF 641 bln of loans and HUF 382 bln has been disbursed.

Around 94% of the HUF 600 bln earmarked for working capital credit in the program has been used up, he added.

About 68% of the Baross Gábor contracts have been signed by microbusinesses and SMEs. Companies in the manufacturing sector account for 41% of the contracted credit, companies in commerce and vehicle repair for 32% and agribusinesses for close to 8%.

Lóga noted that the Baross Gábor credit accounted for over half of total corporate loan contracts signed by local lenders in March-May. Excluding FX loans, the Baross Gábor credit contracts accounted for more than two-thirds of the total, he added.

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