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Gov't cuts allocation for SME lending program on low interest

The government has lowered the amount of capital available to SMEs under the Hungarian Development Bank New Hungary Working Capital program to HUF 15 billion and will launch a new, more efficient lending scheme supported by the European Union's JEREMIE program, MFB spokesman János Nyíri said when asked by MTI.

The program framework was cut because of low interest, Nyíri said. It was launched at the end of 2008 with a lending framework of HUF 140 billion, but applications were made for just HUF 2.4 billion of the amount available, he explained.

"This money will end up in a better place," he said, promising a new, more efficient lending program to be launched soon.

The framework of the program was cut under a government decree published on Thursday. (MTI-ECONEWS)