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MFB cuts benchmark base rate

The state-owned Hungarian development bank MFB has cut its benchmark base rate for Hungary, used for setting subsidy rates, to 5.61% from 5.97% as of January 5, while raising the interest margin on certain refinancing loans by 20-50 basis points, MFB reported.

The European Commission has published the benchmark base rates applicable after January 1, 2011, used for setting subsidy rates, based on which the benchmark base rate for Hungary is being decreased to 5.61% from 5.97%. As a result, the subsidy on preferential loans will be reduced. For refinancing loan applications submitted from January 1, 2011, the new benchmark base rate will apply.

The refinancing interest rates of certain credit programs - such as municipal infrastructure development programs, business development and public transport development programs - have been raised from January.

These will apply for loan applications submitted after March 1, 2010. (MTI – Econews)