State Lenders, Gov't Measures Shave Over 2 pp off Contraction

Figures

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Lending by the state-owned Hungarian Development Bank (MFB) and Magyar Eximbank, along with government measures, reduced the economic contraction by more than two percentage points last year, National Economy Minister Márton Nagy said on Friday, according to a report by state news wire MTI.

Nagy said the two lenders had cut over one percentage point off the contraction, while government measures, such as the interest rate freeze and price caps, reduced the decline by a further percentage point.

The combined balance sheets of MFB and Eximbank climbed over HUF 7.256 trillion last year, rising 40% from 2022, he added.

He said corporate lending would have plunged more than 40% last year without the Baross Gábor Reindustrialization Credit Program launched a year ago.

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