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“Bank for the poor” to open in Hungary at the beginning of January

A “bank for the poor” will begin operations in Hungary at the beginning of January 2010, the business daily Világgazdaság reported.

The experimental bank, which will start with a credit reserve of HUF 400 million (€1.44 million), is aimed at providing chronically unemployed people living in Hungary's poorest regions, in many cases Romas, with loans to start local businesses.

Borrowers may apply for business loans of up to HUF 1 million (€3,602) at 20% interest with a maturity of one and a half years.

The bank, which will not provide consumer credit, aims to have 75% of its loans repaid via revenue generated from active businesses. (MTI-Econews)