Lenders, cbank set to reach agreement on growth scheme by mid-May

MNB

Hungarian lenders appear almost sure to reach an agreement with the National Bank of Hungary on the central bank's recently announced "Funding for Growth Scheme" by the middle of May, Hungarian Banking Association chairman Mihály Patai said in an interview published in Tuesday's issue of daily Népszava. "It's in our joint interest to bring the Hungarian economy from its nadir at present," Patai told the paper. Hungarian lenders continued a series of meetings with MNB officials on Monday to discuss the scheme. Under the Funding for Growth Scheme, the central bank will make a combined HUF 500 billion of 0% financing available to banks for SME lending and the conversion of foreign currency-denominated corporate loans into forint ones. Lenders' interest margin will be capped at 2.5% on loans financed with the MNB credit. The central bank will also cut international reserves by €3 billion by reducing short-term external debt, thus lowering the stock of two-week bills from HUF 4,500 billion to HUF 3,600 billion.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.