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Hungary to launch revolving credit scheme for farmers

Hungary's government will launch a program on September 1 that gives farmers revolving credit lines up to HUF 25 million, Rural Development Minister Sándor Fazekas said at a press conference on Tuesday.

With the Agriculture Széchenyi Card, farmers can get credit lines of between HUF 500,000 and HUF 25 million for one, two or three years, Fazekas said. The state will pay a two-percentage-point interest subsidy as well as subsidize the guarantee fee for the credit, he added.

The government aims to win back the prestige and economic strength of Hungary's farm sector with the construction, he said.

This year, the government will allocate HUF 600 million for interest and guarantee fee subsidies for the Agriculture Széchenyi Card, said state secretary for farm management Zsolt Feldman. Farmers are expected to take out billions of forints of credit under the scheme, he added.