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Microbank to start lending this week

Hungary's microbank expects to grant its first loans this week, the business daily Vilaggazdasag said on Monday.

The pilot programme expects to disburse loans worth HUF 400m over two and a half years. Around 400 businesses could be started from the loans provided by Raiffeisen Bank, from amounts between HUF 300,000-HUF 1m, without any legal or financial guarantees, on a confidence basis. The programme aims to have the outlays recovered from revenue generated by the businesses started with the help of the loans.

The experiment is to provide an answer to the question whether chronically unemployed people living in Hungary's poorest regions, in many cases Roma, could become entrepreneurs, leaving behind unemployment, black economy and segregation to become taxpayers and improve their financial conditions and quality of life. The project was developed by civilians on a voluntary basis at the initiative of the Polgar Foundation for Equal Opportunities, the paper noted. (MTI-ECONEWS)