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Four banks join credit guarantee scheme linked to EU funding

OTP Bank, the Hungarian Development Bank (MFB), Citibank and K&H Bank have so far joined a credit guarantee scheme linked to European Union development grants for businesses, National Development Agency chief Ignac Siba said on Monday.

The four banks are offering businesses preferential loans to pay for investments covered in part by EU funding.

The loans, which may cover up to half of the cost of the investment, have a maximum interest rate of 2.5 percentage points over the BUBOR. For foreign currency-denominated loans, the maximum rate is 3.5 percentage points over the EURIBOR. The loans have a maximum run of 15 years.

The combined loan and guarantee will be offered from October until June 2013.