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MFB expands lending for housing estates

The Hungarian Development Bank (MFB) has announced it raised the amount it will lend to winners of state subsidies to renovate communist-era housing estates, making them more energy-efficient, by HUF 10 billion.

The increased amount will allow for the renovation of another 30,000 homes.

The MFB has made available HUF 20bn in loans to cover co-financing for subsidy winners since 2005. The bank estimates the loans have supported the renovation of 65,000 homes in Hungary, or about 8% of all communist-era pre-fab homes in the country. The loans have generated projects worth HUF 64.5 billion for the construction industry, MFB said.

Borrowers pay a preferential 3.25%-4.25% on the MFB loans.

Homeowners may apply jointly with the other residents in their building for the subsidies. Local councils may also apply. (MTI-ECONEWS)