The state-owned Hungarian Development Bank (MFB) has launched a HUF 30 billion bank guarantee program for food industry companies hit by the crisis, MFB announced on its website.
Under the program, MFB will provide guarantees for 80% of working capital loans with runs of between one and five years. Current account overdrafts and revolving loans are not included in the program.
The program targets bigger companies, offering guarantees between HUF 200 million and HUF 2 billion. Companies will pay an annual fee of 0.5-6.3% varying according to risk.
The state will guarantee 90% of the MFB guarantee for a premium of 0.3-2%. (MTI-ECONEWS)