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Gov’t boosts guarantees for businesses

  Government officials announced doubling the amount of state-backed credit guarantees for local businesses, while also commencing a HUF 50 billion preferential credit scheme to aid Hungarian small- and medium enterprises to help them survive the economic crisis.

 

Finance Minister János Veres said the maximum amount of state-backed credit guarantees at state-held credit insurer Garantiqa Hitelgarancia will be raised from the current HUF 450 billion to HUF 900 billion. Garantiqa guarantees may cover up to 80% of the individual loan amount. Furthermore, Garantiqa Hitelgarancia is also revising the terms of eligibility.

On a similar stance, National Development and Economy Minister Gordon Bajnai said the Cabinet is launching a HUF 50 billion support scheme for smaller business in cooperation with seven banks, including OTP, CIB, K&H and Erste. Bajnai noted the applicants will be offered loans ranging from HUF 10–100 million, with beneficial interest and duration terms. (Gazdasági Rádió)